Ohio Gaming Regulators Slap Kalshi with $5 Million Fine

^{The state of Ohio issued a $5 million fine against prediction market company Kalshi on Tuesday. (Photo: Samuel Boivin / Alamy)}

The Ohio Casino Control Commission (OCCC) announced Tuesday that it was issuing a $5 million fine against prediction platform Kalshi for allegedly operating unlicensed sports betting in Ohio.

The fine comes a year to the day after the April 14, 2025, deadline that the commission gave to Kalshi, Robinhood, and Crypto.com to stop offering sports contracts in the state, as set out in cease-and-desist notices sent last year.

Commission, Kalshi Trade Statements on Fine

The OCCC didn’t reveal how it calculated the fine for Kalshi, but said the platform had forced its hand by continuing its operations in the state.

“Kalshi’s refusal to stop offering sports gaming in Ohio necessitated the Commission to take action to uphold the requirements of Ohio law,” the OCCC said in a press release. “The Commission takes its regulatory responsibilities to ensure compliance with the law and the integrity of sports gaming in Ohio seriously.”

The OCCC said it would not comment further, as the matter with Kalshi remains ongoing. Kalshi has 30 days to request a hearing to discuss the proposed fine.

Kalshi and other prediction market platforms have maintained that they are fundamentally different than sports betting sites and that they operate under the jurisdiction of the federal Commodity Futures Trading Commission (CFTC). The company reiterated its position after the OCCC announcement.

“We are disappointed in this latest development, especially considering our ongoing litigation with Ohio and recent rulings in other courts confirming our right to operate as a federally licensed exchange,” a Kalshi spokesperson told The Columbus Dispatch via email. “We are reviewing the Gaming Commission’s letter.”

Courts Divided on Legal Standing of Prediction Markets

While other prediction markets like Polymarket are also caught up in the legal debate, Kalshi has been at the center of the court actions with state regulators. And while Kalshi points to its victories in court as a sign that it is following the law, the overall results have been more mixed than it likes to admit.

Kalshi recently won a case in the 3rd Circuit Court of Appeals, which ruled 2-1 that New Jersey regulators can’t prevent it or other prediction markets from issuing sports-based contracts on their platforms, as the CFTC has exclusive jurisdiction over its swaps. The federal government has also sued Arizona, Connecticut, and Illinois to stop those states from taking steps against prediction markets.

But in Nevada, a judge has extended a ban against Kalshi until April 17, by which time a temporary restraining order will be issued against the company to prevent it from operating in the state for a longer period of time. Courts in Maryland and Massachusetts have also ruled in favor of state regulators, and the dueling rulings are likely to lead to a showdown before the Supreme Court at some point.

For now, however, Ohio officials are expressing confidence that they’ll win their own battle against Kalshi.

“Ohio put Kalshi on notice today that its ‘prediction markets’ are unlawful gaming and proposed a $5 million fine. A federal court already agreed with our reading of the law,” Ohio Attorney General Dave Yost said on social media. “I wouldn’t bet on how long Kalshi will be operating in Ohio.”