Polymarket has filed a lawsuit against Ohio, arguing that the state's sports betting regulations violate the Commerce Clause. The prediction market also faced backlash for facilitating trades on high-profile cases.
Ohio has issued cease-and-desist orders to 10 prediction market operators, citing violations of state law. The operators include Underdog, Robinhood, Polymarket, Coinbase, Novig, Gemini, Titan, ProphetX, WeBull, Plus500, Moomoo Financial, and Kalshi.
The 6th U.S. Circuit Court of Appeals has ruled that Ohio and Tennessee can apply their gaming laws to sports event contracts, adding to the legal uncertainty in the prediction markets sector. Kalshi, a prediction market platform, argued that it does not expect the decision to survive further legal review.
Jennifer Grant Weinandy of Ohio University discusses the gambler’s fallacy and the impact of prediction markets on gambling behavior. She emphasizes the need for regulation as these markets expand beyond sports.