Kalshi Fined $5 Million by Ohio Gaming Regulators

Ohio gaming regulators have fined Kalshi $5 million for violating state gaming laws, ordering the company to cease offering sports event contracts. The Ohio Casino Control Commission (OCCC) imposed the fine after Kalshi continued to offer sports event contracts in Ohio, despite being ordered to stop. The OCCC emphasized its commitment to ensuring compliance with the law and the integrity of sports gaming in Ohio.

The fine comes amidst ongoing legal battles between prediction market firms and state regulators. A federal appeals court recently ruled that the Commodity Futures Trading Commission should regulate prediction markets, not state gambling regulators. However, a federal judge in Ohio ruled that Kalshi and similar platforms must follow state gaming laws.

Kalshi has responded to the fine by referencing recent court rulings and considering its legal options. The company has also filed a federal lawsuit against Montana Attorney General Austin Knudsen to prevent the state from enforcing state gambling laws against the company. Kalshi argues that its offerings are different from traditional sports betting and that traders' ability to hedge risk requires counterparties willing to assume risk.