Ohio senator seeks sports-betting rules for prediction markets and election-contract ban

Ohio Sen. Bill DeMora has introduced two measures aimed at bringing prediction markets under the state’s gambling framework. One would treat sports-related contracts offered through those platforms as regulated sports gaming; the other would make betting on elections prohibited gambling.

Senate Bill 430 would specify that certain activity constitutes regulated sports gaming, according to the Ohio Legislature’s bill record. DeMora says its effect would be to subject sports-event wagers made through prediction markets to the same state rules that apply to sportsbook operators.

Senate Bill 479 would specify that betting on elections is prohibited gambling. DeMora has described the proposal as barring prediction-market platforms from offering election-related contracts, while another description of the bill says it would prohibit individuals from placing such bets.

Both bills were awaiting sponsor testimony in their respective Senate committees, with no further timetable given for hearings or votes. DeMora called regulation an immediate, nonpartisan concern and said Ohio was losing tens of millions of dollars each month because the sites were not regulated.

The proposals followed a Sept. 25 decision by the U.S. Court of Appeals for the Sixth Circuit in Kalshi’s challenges to Ohio and Tennessee enforcement. The court held that Kalshi’s sports-event contracts did not meet the statutory definition of swaps and that, even if they did, the Commodity Exchange Act did not preempt the states’ gambling laws.

The appeals court affirmed the denial of Kalshi’s request for a preliminary injunction in Ohio, vacated an injunction granted in Tennessee and returned the cases for further proceedings. Kalshi, which has operated as a Commodity Futures Trading Commission-designated contract market since 2020, began listing sports-event contracts in January 2025.

Ohio law defines sports gaming as accepting wagers on sporting events, requires wagers to be initiated, received and completed within the state, and limits participation to people aged 21 or older. DeMora said the Sixth Circuit’s decision confirmed that prediction markets were not exempt from those rules and should face the same treatment as other sports-betting companies.

Ohio’s Casino Control Commission separately sent cease-and-desist letters to 10 companies offering event contracts on Oct. 2, as we reported. The commission characterized the sports contracts as alleged unlicensed sports betting that avoided the permits, fees, regulation and taxation required of Ohio sportsbooks.

The Sixth Circuit covers Ohio, Kentucky, Tennessee and Michigan, although the litigation involving Kalshi remains pending in the lower courts.