Key Moments:
- The Ohio Casino Control Commission set a October 30 deadline for gambling licensees to cut ties with prediction market operators.
- Earlier in October, regulators issued cease-and-desist orders to 10 prediction market companies with promises of strict enforcement.
- Meanwhile, lawmakers are considering new legislation to bring prediction markets under state sports betting rules.
Regulator Enforces Withdrawal from Prediction Markets
The Ohio Casino Control Commission has instructed all sports betting and fantasy licensees to stop serving prediction market platforms by October 30. Specifically, this directive applies to platforms offering sports event contracts in the state. Furthermore, the order extends to suppliers, integrity monitors, and testing laboratories. Regulators issued the directive on October 20 as their latest effort to combat unlicensed gaming activity.
This decision follows earlier cease-and-desist orders sent to 10 prediction market operators on October 2. At that time, officials required those businesses to end sports contracts by October 16. The Commission confirmed that it will take swift action against any non-compliant operators.
Currently, major brands like DraftKings, FanDuel, and Fanatics operate both sports betting and prediction market products in Ohio.
Regulatory Concerns and Legal Standing
The Commission emphasized that its regulatory stance has remained consistent since early 2025. According to officials, offering sports event contracts in Ohio constitutes regulated sports gaming. Therefore, companies must hold proper state licensure. Additionally, regulators cited a September decision by the U.S. Court of Appeals for the Sixth Circuit. The court ruled that federal jurisdiction over these contracts is not exclusive. Consequently, this decision affirmed Ohio’s authority to enforce its own gaming laws.
Beyond licensing issues, regulators warned that these partnerships carry broader risks. Specifically, ongoing ties with unlicensed operators could undermine public confidence in Ohio’s gaming sector.
In remarks to the Commission, interim executive director Andromeda Morrison issued a warning. She noted that supporting unregulated gaming through prediction markets could directly jeopardize a licensee’s ongoing suitability.
Legislative Path and Revenue Implications
While the OCCC pursues direct enforcement, Ohio lawmakers are pursuing a regulatory framework. In April, lawmakers introduced Senate Bill 430 to reclassify sports event contracts as sports betting. As a result, platforms such as Kalshi and Polymarket would fall under state oversight. Under the proposed law, operators must obtain a state sports betting license and pay Ohio’s 20% betting tax. Moreover, they must follow strict rules on advertising, player protections, and minimum age limits. Meanwhile, lawmakers are also considering a separate bill to ban prediction markets on election outcomes.
In addition, financial estimates indicate significant state losses. Specifically, Ohio may be missing out on $80 million to $100 million in potential tax revenue.
| Recent Enforcement Actions | Date |
|---|---|
| Cease-and-desist orders to 10 operators | 2 October |
| Deadline for operators to cease services | 16 October |
| New compliance deadline for licensees | 30 October |
Strict Compliance Required
The Commission emphasized that licensees must immediately halt all connections with non-compliant prediction markets. Furthermore, each affected business must submit written proof of compliance by October 30. Companies must also maintain detailed documentation to support their responses. Ultimately, failure to comply may trigger formal investigations.
- Author
Daniel Williams
