Ohio Gov. DeWine Vows Lawsuits Against Sports Prediction Markets

Ohio is preparing to take prediction market companies to court. Gov. Mike DeWine told reporters that the attorney general will file suits against companies offering sports contracts in the state.

The move escalates a fight that began with state cease-and-desist letters earlier this month. It could decide which sports trading apps Ohio bettors can keep using.

What DeWine Said About Suing Prediction Markets

DeWine said he’s been watching ball games and seeing ads for betting operations that are unregulated in Ohio. He called the products “pure and simple gambling” and said the companies “are trying to get around any regulations.”, the Statehouse News Bureau reported for WYSO.

He also acknowledged gaps in the state’s own rules. “We have some, some regulations over gambling. Maybe not enough. But we have some,” DeWine said.

The governor stressed that enforcement takes action in court. “These are not self-executing. You have to actually go out and file these suits, and that’s what we are going to do,” he said.

WYSO named Polymarket, Robinhood, and Kalshi among the companies offering bets based on sports predictions. These are sold as event contracts, which let users buy a position on whether something will happen. On some platforms, users can bet on one-off actions athletes take during a game.

How the Lawsuit Threat Builds on the October 2 Letters

DeWine’s remarks are the next step after the Ohio Casino Control Commission (OCCC) acted earlier this month. The OCCC ordered 10 prediction markets to halt sports contracts in letters dated Oct. 2. The recipients were Coinbase, Gemini Titan, Moomoo Financial, Novig, Plus500US, Polymarket (U.S. entity), ProphetX, Robinhood Derivatives, Underdog, and Webull.

The letters gave each company until October 16 to confirm compliance in writing. Kalshi was not on the list. The letters threatened further action, and DeWine said that warning is not an empty threat, per the Statehouse News Bureau.

What We Don’t Know Yet

Two key questions remain open. There is no confirmation whether any of the 10 companies met the October 16 deadline. We also couldn’t confirm whether the attorney general has filed any new lawsuit since DeWine spoke.

DeWine spoke about lawsuits in the future tense, so watch this space.

Kalshi and the Federal vs. State Law Dispute

The legal backdrop favors Ohio for now. DeWine said “the court decisions have been very clear,” and the attorney general “is taking actions he needs to take.”

On September 25, the Sixth Circuit ruled in KalshiEx LLC v. Schuler that federal law doesn’t override Ohio gaming law for sports event contracts. Kalshi argues it must operate under federal law instead of state gambling rules. The ruling is being appealed, so the issue isn’t settled.

Two Ohio Senate Bills on Prediction Markets

Lawmakers have also filed bills that would set clearer rules. SB 479 would ban anyone from betting on elections and bar election-related bets on prediction markets. SB 430 would make sporting event contracts a form of sports gambling, regulated and taxed by the state.

Both bills are sponsored by Democrats, and neither has gained traction. If SB 430 passed, sports contracts would fall under the same state oversight as Ohio sportsbooks.

Prediction Markets vs. Ohio-Regulated Sportsbooks

Ohio bettors now face two different kinds of platforms, and they aren’t interchangeable. State-regulated sportsbooks are licensed by the OCCC, which has overseen regulated sports betting since January 1, 2023. Prediction markets sell sports event contracts. Kalshi argues federal law governs them, a position Ohio rejects.

DeWine’s comments targeted prediction market companies.

Why DeWine’s Lawsuit Threat Matters for Ohio Bettors

If you hold sports contracts on a prediction market app, your access in Ohio could change quickly. Lawsuits could push more companies to stop offering sports contracts in the state. The Kalshi appeal and the stalled Senate bills mean the rules could still shift.

Until things settle, check each platform’s status in Ohio before you deposit or trade. Keep stakes to money you can afford to lose. If gambling stops feeling like entertainment, step back and reach out to a responsible gambling support service.