Ohio Governor DeWine Signals More Enforcement Against Sports Prediction Markets

Ohio is preparing to take further legal action against prediction market operators that offer sports-related contracts, Governor Mike DeWine has said. He argues the products violate the state's gambling laws. The Ohio Casino Control Commission has already sent cease-and-desist notices to several companies, among them Kalshi, Polymarket and Robinhood.

DeWine said the state intends to pursue enforcement rather than rely only on warnings. He questioned why prediction market operators should be allowed to offer sports-related wagers without meeting the requirements imposed on licensed sportsbooks. He also raised concerns about the advertising of such platforms around sporting events and said they are trying to avoid state oversight by operating under a different regulatory framework, according to The Statehouse News Bureau.

Ohio has prohibited certain forms of sports betting since 2005, including wagers on specific plays within a game. State officials say those limits can apply to contracts tied to sporting events regardless of how the platforms describe their products. The central legal question is whether federal regulation lets prediction markets sidestep state gambling law. Kalshi maintains that its event contracts fall under the Commodity Futures Trading Commission rather than state gaming regulators. A federal court recently ruled that Kalshi must comply with Ohio law, and the company has challenged that decision, arguing federal oversight should take precedence.

Two bills in the Ohio Legislature could tighten the state's approach. Senate Bill 479 would ban election betting and prevent prediction market websites from offering election contracts. Senate Bill 430 would classify sporting event contracts as sports gambling, placing them under state regulation and taxation. Neither has gained much traction so far.

The latest comments follow DeWine's October 5 warning that Ohio would use its gambling laws against Kalshi. Problem gambling advocates have also weighed in. In September, Derek Longmeier of the Problem Gambling Network of Ohio said prediction markets could expose younger adults to gambling because users can join at 18, while the legal age for traditional sports betting in Ohio is 21. He described 18-to-25-year-olds as especially vulnerable given how easy online trading is.

The issue has also strained relations between regulators and responsible gambling groups. The Ohio Casino Control Commission ended its ties with the National Council on Problem Gambling last September after the group accepted a donation from Kalshi, citing concerns about public confidence. The NCPG has said that accepting funding does not amount to endorsing a company's products.