Ohio’s gaming regulator is escalating its action against Kalshi, announcing plans to impose a $5 million fine on the prediction market platform.
The Ohio Casino Control Commission (OCCC) issued a notice of intent, arguing that Kalshi’s sports event contracts effectively amount to unlicensed sports betting within the state. According to the regulator, these contracts allow users to wager on outcomes such as game results and player performance.
The OCCC stated:
Kalshi’s ‘sports event contract’ offerings specifically enable Ohio consumers to wager or bet on uncertain outcomes of sporting events like professional and collegiate games and the individual performance statistics of athletes.
The commission claims Kalshi has been operating without a license in Ohio since January 2025 and insists it has full authority to act, as it is “charged with ensuring the integrity of sports gaming in the State of Ohio.”
The move follows an earlier cease-and-desist order issued in April 2025, which Kalshi allegedly ignored. The regulator now accuses the company of multiple violations, including failing to cooperate with authorities and continuing operations despite formal warnings.
The OCCC added:
Based upon the foregoing, and pursuant to Ohio law, Kalshi is subject to administrative action for operating or conducting sports gaming without a license, failing to cooperate with the Commission (which includes failing to abide by the Commission’s cease and desist order and failing to provide the Commission with the information it requested), and engaging in conduct that undermines the integrity, or public confidence in, sports gaming in Ohio.
Regulators also raised concerns about compliance gaps, including allowing users aged 18–20 to access sports contracts, not paying state taxes on gaming revenue, and failing to apply required financial safeguards.
Kalshi has 30 days to request a hearing. Responding to the notice, the company signaled it will push back.
Elisabeth Diana, Head of Communications, said:
We’re reviewing the letter and will protect our interests to the maximum extent provided by the law. Disappointing, considering our ongoing litigation with the state and recent rulings in other courts confirming our right to operate as a federally licensed exchange.
The dispute is part of a broader legal battle between Kalshi and Ohio authorities. The company previously sued the regulator and the state’s attorney general, arguing that its contracts fall under federal oversight by the Commodity Futures Trading Commission (CFTC), not state gambling laws.
A federal judge has already denied Kalshi’s request for a preliminary injunction, stating the company failed to clearly demonstrate it was entitled to such relief. The case continues, alongside similar legal challenges involving Kalshi in other U.S. states.
Source link
