Most Ohio-targeted prediction markets stayed active after deadline

Most of the prediction-market platforms ordered by Ohio to stop offering sports contracts remained active after the state’s Oct. 16 compliance deadline. The Ohio Casino Control Commission had required the companies to confirm that they had shut down their sports markets, while warning of possible civil and criminal penalties.

As we reported earlier this month, Ohio sent cease-and-desist notices to 10 companies on Oct. 2. News 5 Cleveland and the Ohio Capital Journal reported that, by the end of business on the deadline Friday, most of the targeted platforms were still operating without visible changes.

The orders covered companies whose platforms allow users to trade contracts tied to sporting events. Polymarket, Coinbase and Robinhood were among the sites identified in the notices. Ohio officials regard the offerings as illegal gambling under state law.

Plus500US told the commission it would stop offering sports contracts. A test account reviewed by News 5 Cleveland and the Ohio Capital Journal showed the message, “trading sports is not allowed in your location,” though reporters said they appeared able to work around the restriction without placing a bet.

Polymarket and Robinhood maintained that they are regulated by federal authorities rather than Ohio. Kalshi did not receive a new cease-and-desist letter because it had already received a court order in its case setting out what the state sought.

Gov. Mike DeWine said he had seen prediction-market advertisements during baseball games. “This is pure and simple gambling,” he said. Interim Attorney General Andy Wilson said Ohio could seek to recover money earned from sports contracts while companies operated in the state, adding that operators must comply or be forced into compliance.

Ohio’s sports-betting rules set a minimum wagering age of 21. Registration as a sportsbook can cost more than $1 million, and the state levies a 20% tax on sports betting. Eric Chaffee said compliance would require a gaming licence as well as further disclosure and compliance obligations.

The dispute turns on whether sports-event contracts fall under federal commodities regulation or state gambling law. In April, a bipartisan coalition of 41 state attorneys general led by then-Ohio Attorney General Dave Yost urged the Commodity Futures Trading Commission to recognise state authority, arguing that the platforms function as unregulated sportsbooks and bypass consumer-protection and tax requirements.

Ohio Sen. Bill DeMora has also proposed Senate Bill 430, which would classify prediction-market sports bets as sports gambling under state rules. A separate measure, Senate Bill 479, would bar betting on elections and election-related contracts. Both bills were awaiting sponsor testimony in their respective committees.