Published on: April 15, 2026, 12:53h.
Updated on: April 15, 2026, 12:53h.
- Ohio imposes a $5 million penalty on Kalshi for operating an unauthorized sportsbook
- A recent federal ruling has confirmed that the Commodity Exchange Act does not override Ohio’s regulations on permissible gambling
Kalshi, a prediction market platform, has been ordered by the Ohio Casino Control Commission (OCCC) to pay a $5 million fine for allegedly operating an unlicensed sportsbook.
The OCCC oversees regulations for casino gaming, sports wagering, fantasy sports, and skill-based games in Ohio. The Commission contends that the contracts traded by Kalshi involving sporting event outcomes are akin to sports betting, requiring the platform to secure a sports wagering license to accept bets in Ohio.
“The Commission is committed to upholding the law and ensuring the integrity of sports gambling within Ohio,” the OCCC stated in an official communication.
Kalshi is under federal oversight from the Commodity Futures Trading Commission (CFTC).
During the latter part of the Trump administration, the CFTC sought to clarify the legality of trading contracts related to sporting events on prediction markets. Nevertheless, multiple states have challenged prediction markets and the CFTC, arguing that these operators are encroaching on state gambling laws.
Today, Ohio officially notified Kalshi that its prediction markets are illegal gaming activities. A federal court has already reached a similar conclusion regarding the law,” stated Ohio Attorney General Dave Yost. “I wouldn’t wager on how long Kalshi will continue operations in Ohio.”
Earlier this year, a federal judge determined that Kalshi’s prediction markets related to sports are illegal gambling activities. Judge Sarah Morrison concluded that the Commodity Exchange Act does not prevent Ohio from regulating which forms of gambling are permissible within its borders.
Response from Kalshi
Kalshi insists it is entitled to facilitate the trading of sports-related events under federal law. Recent insights from Jefferies analysts suggest that prediction markets may face judicial defeats in the coming years, particularly if taken to the Supreme Court.
Currently, the CFTC affirms that licensed prediction markets, functioning as Designated Contract Markets, are authorized to trade shares linked to sports outcomes.
“We are disheartened by this latest development, particularly given our ongoing legal battle with Ohio and recent court rulings affirming our right to operate as a federally licensed exchange,” Kalshi stated.
Kalshi has experienced more favorable outcomes in other jurisdictions. For instance, a District Court in Washington, DC, ruled that its contracts do not qualify as gambling. Moreover, a federal judge in Arizona determined that the state could not pursue illegal gambling charges against Kalshi. Likewise, New Jersey’s Third Circuit Court decided that gaming regulators lack authority over Kalshi.
OCCC: Kalshi Encourages Sports Betting
Matt Schuler, executive director of the OCCC, mentioned that while Kalshi argues in court that it does not engage in gambling, its promotional material tells a different story.
“Kalshi frequently refers to its sports event contracts as ‘sports betting’ in its marketing and compares them with bets available at leading sportsbooks,” Schuler noted. “Their offerings use typical wagering terminology, such as spreads, totals, and props.”