Ohio regulator warns gambling firms over prediction market services
The Ohio Casino Control Commission (OCCC) has warned gambling licensees against providing services to prediction market operators offering sports event contracts to Ohio residents.
In a warning issued on Tuesday to its sports gaming and fantasy contest licensees and applicants, the OCCC set a 30 October deadline for compliance, warning that failure to comply could result in investigations, license suspensions or revocations.
According to The Event Horizon, the notice covers sportsbooks, suppliers, fantasy contest companies and other licensees.
However, certain futures commission merchants and introductory brokers are exempt if they prevent Ohio customers from accessing sports event contracts directly or indirectly.
The warning follows a legal challenge by prediction market platform Polymarket, which filed a federal complaint last week. The company argues that Ohio’s enforcement measures are discriminatory and unconstitutional, claiming that its contracts fall under federal commodities law.
Earlier this month, the OCCC sent cease-and-desist letters to 10 companies offering sports-related trading products, requiring them to stop operating in Ohio by 16 October. The Ohio Capital Journal reported that most remained operational after the deadline.
Ohio lawmakers are also considering legislation targeting prediction markets.
Senate Bill 430 would classify sports event contracts as sports betting, subjecting them to state gambling regulations, while Senate Bill 479 would prohibit election contracts. The legislative session is scheduled to end on December 17.
The dispute reflects the regulatory uncertainty surrounding prediction markets as operators argue that sports event contracts fall under federal regulations while state authorities seek to regulate them as gambling.
