Ohio sends prediction market operators cease-and-desist letters
The Ohio Casino Control Commission has issued cease-and-desist letters to event contract prediction markets Kalshi, Robinhood and Crypto.com.
Operators need a license from the Ohio Casino Control Commission to provide sports betting in the state, and none of the three sites is licensed. The Commission has given the platforms until 14 April to withdraw from the state.
Sites like Kalshi, Robinhood and Crypto.com offer event contracts, where users can buy contracts for “yes” or “no” on a question and get paid for each contract if the prediction is correct. These operators have recently started offering prediction contracts on sports events like the Super Bowl and March Madness.
“Purchasing a contract based on which team a person thinks will win a sporting event is no different than placing a bet through a traditional sportsbook,” Ohio Casino Control Commission Executive Director Matthew Schuler said in a press release. “The only difference is that these event contracts do not have the consumer protections required under Ohio law and are accessible to Ohioans under 21 years of age. The Commission must take action to fulfill its statutory responsibilities and ensure the integrity of sports gaming in Ohio.”
Last month, the New Jersey Division of Gaming Enforcement also sent cease-and-desist letters to these operators.
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