A regulation roundup reported that states including Colorado, Minnesota and Wisconsin were continuing moves against prediction markets. It also reported that Oklahoma’s legislature overrode its governor, without specifying the measure or its effect.
State actions could affect the regulatory position of prediction markets in several US jurisdictions.
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Ohio Governor Mike DeWine said the state will pursue enforcement against more prediction market operators offering sports-related contracts, reported by The Statehouse News Bureau. The Ohio Casino Control Commission has already issued cease-and-desist notices to Kalshi, Polymarket and Robinhood. Two bills would restrict election betting and treat sporting event contracts as regulated, taxable sports gambling.
Governor Mike DeWine has signaled that Ohio intends to take enforcement action against additional prediction market operators that list sports-related contracts, describing those products as violations of state gambling law. According to The Statehouse News Bureau, the governor made clear that the state's response will involve enforcement rather than warnings alone. Cease-and-desist notices have already gone out from the Ohio Casino Control Commission to multiple firms, among them Kalshi, Polymarket and Robinhood.
US District Judge Lorna G. Schofield questioned the CFTC's prospects of securing a preliminary injunction to prevent New York from enforcing gambling laws against event-contract platforms. At a 14 September hearing, the agency argued that the contracts fall under its exclusive authority; New York, the American Gaming Association and 44 state attorneys general oppose that position. Federal appeals courts have issued conflicting rulings, and the Supreme Court has been asked to resolve the dispute.
The US Commodity Futures Trading Commission sued Rhode Island, seeking to halt the state’s action against prediction markets, according to the report. The dispute followed Rhode Island Attorney General Peter Neronha’s lawsuits against Kalshi and Polymarket; federal officials classify the platforms’ contracts as derivatives, while state authorities regard them as unlicensed gambling.
A US District Court in Arizona temporarily barred the state from proceeding with legal action against prediction market providers after granting the CFTC’s injunction request, according to a media report. The order remains in effect until 24 April. The CFTC also named five initial members of its Innovation Task Force, which will work on regulatory frameworks including prediction markets and event contracts.
Reportedly, Connecticut took enforcement action against nine prediction-market platforms on Thursday. Its news roundup also covered higher first-half earnings at Playtech, FATF money-laundering indicators related to gambling and another FanDuel prediction-market partnership.