Ohio has ordered Kalshi, Robinhood, and Crypto.com to cease offering sports prediction markets, escalating a regulatory battle over whether such contracts constitute illegal sports betting.
The Ohio Casino Control Commission (OCCC) issued cease-and-desist notices to the three companies, arguing that their event contracts meet the state’s definition of sports betting and require licensure.
OCCC Executive Director Matthew Schuler said: “Purchasing a contract based on which team a person thinks will win a sporting event is no different than placing a bet through a traditional sportsbook.”
“The only difference is that these event contracts do not have the consumer protections required under Ohio law and are accessible to Ohioans under 21 years of age.”
The move follows similar cease-and-desist orders in New Jersey and Nevada, intensifying legal challenges for Kalshi, which has positioned itself as a federally regulated prediction market platform.
Kalshi, which has already filed lawsuits against regulators in New Jersey and Nevada, is expected to challenge Ohio’s ruling as well.
Kalshi CEO Tarek Mansour criticized state regulators, stating on X: “Both states have issued cease-and-desist orders that fundamentally misunderstand prediction markets and undermine the foundation of U.S. financial markets, which are regulated by the federal government.”
“We are left with no choice: sue,” he said.
Kalshi will appear in court on Wednesday to seek a temporary restraining order and preliminary injunction against New Jersey regulators.
While the Commodity Futures Trading Commission (CFTC) oversees prediction markets at the federal level, it has yet to take recent action against Kalshi or Robinhood. However, some states, including Massachusetts, Ohio, Nevada, and New Jersey, have taken enforcement measures.
Massachusetts Secretary of State Bill Galvin has subpoenaed Robinhood, calling its sports event contracts “another gimmick” designed to lure investors.
A CFTC roundtable announced in February aimed to address sports-related event contracts, but there has been no update on when it will take place.
Major League Baseball (MLB) has also voiced concerns, warning that the lack of an integrity framework could create risks. The league noted that some exchanges and brokers do not share information with sports authorities, potentially leaving threats unreported.
MLB in a statement to the CFTC: “As the resemblance between sports event contracts and traditional sports betting markets continues to grow, so too does the need to replicate the integrity and consumer protections that exist at the state level.”
Despite regulatory scrutiny, major gambling companies appear interested in entering the space. DraftKings has filed for a product called “DraftKings Predicts,” signaling a potential expansion into prediction markets.
Original article: https://www.yogonet.com/international/news/2025/04/02/100231-ohio-orders-kalshi-robinhood-cryptocom-to-halt-sports-prediction-markets
