Ohio Takes Action Against Prediction Market Operators

Ohio has issued cease-and-desist orders to 10 prediction market operators, including Underdog, Robinhood, Polymarket, Coinbase, Novig, Gemini, Titan, ProphetX, WeBull, Plus500, Moomoo Financial, and Kalshi. The state considers these operators to be offering sports event contracts in violation of state law, following a ruling by the Sixth Circuit Court of Appeals that backs states’ rights to enforce their gambling laws against prediction operators.

The cease-and-desist letters state that the prediction markets are operating online sports gaming, which is a felony without an appropriate license. Ohio has requested a written response from each recipient assuring its compliance. Gov. Mike DeWine has expressed regret for signing the legalization of betting into law.

In 2025, Ohio successfully pushed for a policy change that capped micro-bets at many sportsbooks at $200. This move was in response to an alleged fixing scandal centered around two Cleveland Guardians pitchers. The case is still proceeding through the courts. Additionally, the Commodity Futures Trading Commission (CFTC) has submitted a proposal for a rule to exclude casino-style gambling products from the definition of a swap. Kalshi and CBS have signed a sponsorship agreement that will put Kalshi market data front and center in CBS’s coverage of the upcoming midterm elections.