Ohio is the most recent state to take formal motion in opposition to prediction market operators, issuing cease-and-desist orders to 10 of them. All are providing sports activities occasion contracts in Ohio. And Ohio says they’re all violating state legislation, after the Sixth Circuit Court of Appeals issued one more opinion backing states’ rights to implement their playing legal guidelines in opposition to the prediction operators.
Ohio Comes After 10 Operators
Here’s an inventory of the operators that Ohio despatched cease-and-desists to:
- Underdog
- Robinhood
- Polymarket
- Coinbase
- Novig
- Gemini Titan
- ProphetX
- WeBull
- Plus500
- Moomoo Financial (sure, actually)
Kalshi was already a celebration within the preliminary litigation that resulted in Ohio’s favor.
States similar to Michigan and Nevada have efficiently evicted the prediction markets, not less than with regards to sports activities contracts, the first level of rivalry between the operators and the states.
“The ultimate result is money being won or lost based on the outcome of a game or a team or player’s performance,” the letter states. “Plainly stated, [addressee] is operating online sports gaming.”
The letters go on to notice that providing sports activities bets with out an acceptable license is a felony. Ohio additionally requests a written response from every recipient assuring its compliance.
Ohio has been among the many most aggressive states at pushing again in opposition to the sports activities betting trade normally, to say nothing of prediction markets, which produce the entire social ills of sportsbooks with none of the state tax income. Gov. Mike DeWine has stated he regrets signing the legalization of betting into legislation. In 2025, Ohio efficiently pushed for a coverage change that capped micro-bets at many sportsbooks at $200. It did so in response to an alleged fixing scandal centered round two Cleveland Guardians pitchers. That case remains to be continuing by way of the courts.
Republican lawmakers in Ohio have tried to severely handcuff the industry, although the laws they pushed appears unlikely to go wherever.
Also in Prediction Market News
CFTC Looking to Head Off Possibility of Casino-Like Event Contracts
One widespread chorus within the pushback in opposition to prediction markets has been the potential of markets that successfully mimic a on line casino recreation. For instance, a prediction market may provide contracts on the reside spin of a roulette wheel, with customers shopping for and promoting numerous numbers and colours. Or a blackjack hand may very well be dealt someplace, and merchants may purchase or promote contracts based mostly on whether or not the vendor or participant wins.
The Commodity Futures Trading Commission (CFTC), which regulates the prediction markets, seems to be seeking to head off this risk. It submitted a proposal for a rule to “exclude casino-style gambling products” from the “definition of a swap.”
Swaps permit counterparties to change dangers, and the prediction trade argues that the occasion contracts provided are swaps, making them exempt from playing legislation.
If the CFTC desires that speaking level to go away, it is a step in that course. However, state regulators nonetheless have an entire lot of issues with the sports activities occasion contracts. So that combat will stay ongoing till and until readability emerges, seemingly from the Supreme Court.
CBS News, Kalshi Pair Up Before Elections
Kalshi and CBS signed a sponsorship agreement that can put Kalshi market knowledge entrance and middle in CBS‘ protection of the upcoming midterm elections.
“We’ll offer a glimpse into how prediction market traders are pricing race outcomes – but it will be the voters that decide it all,” CBS introduced on social media.
Kalshi already had media partnerships with CNN, FOX and CNBC.
While sports activities betting dominates prediction market quantity, political contracts within the 2024 election served as Kalshi’s coming-out occasion. Few folks had ever heard of or used prediction markets earlier than then, however buying and selling intensified within the days main as much as the election, and the market wound up doing greater than $670 million in volume.
Naturally, the midterms don’t determine to generate fairly as a lot mainstream curiosity. But merchants have already put near $100 million in play on management of each congressional homes. The elections give prediction markets an opportunity to leverage their predictive energy into turning into a speaking level on the information. That can present publicity and generate curiosity.
And they provide the operators an vital alternative to pump up non-sports quantity. That may very well be particularly essential in a world the place the states proceed to win court docket victories, and sports activities occasion contracts grow to be a factor of the previous.
