Ohio Licensees Have Until Oct. 30 to Cut Prediction Market Ties

The reach goes well beyond sportsbooks and fantasy operators. Holland & Knight says suppliers, vendors, key employees, certified testing labs, and integrity monitors that work with prediction markets are all covered, along with anyone with a pending application.

The commission said it is aware of reports that some licensees provide prediction market operators with services such as liquidity provision, market making, integrity monitoring, equipment and data security. It treats that as a suitability problem, and the notice is blunt about why: "The continued facilitation or support of illegal gambling activity, or the affiliation with illegal operators, by a commission licensee raises significant suitability concerns."

Suitability is a condition of every Ohio gaming license, and the commission has warned it may reopen suitability reviews or move to suspend or revoke licenses. Offering sports gaming without a license is a felony under Ohio law.

The notice escalates guidance the commission issued in August 2025, which warned licensees that working with prediction markets could trigger suitability reviews. The legal footing came on Sept. 25, when the Sixth Circuit ruled against Kalshi in a case over Ohio's authority to enforce its gambling laws.

In the opinion, Judge Julia Smith Gibbons wrote that Kalshi had not shown its sports event contracts qualify as "swaps" under the exclusive jurisdiction of the Commodity Futures Trading Commission. The court added that, even if they did, the Commodity Exchange Act does not preempt Ohio's gambling laws.

On Oct. 2, the commission sent cease-and-desist letters to 10 companies: Coinbase, Gemini, Moomoo Financial, Novig, Plus500US, Polymarket, ProphetX, Robinhood, Underdog Predict and Webull Financial. Their deadline to comply was Oct. 16. By the close of business that day, most were still offering sports markets, according to News5 Cleveland. The station reported that Plus500US told the commission it would stop sports contracts.

Polymarket US sued Ohio officials in federal court on Oct. 16, arguing the state's licensing structure is preempted by federal law. Morrison told commissioners the state will "vigorously defend" its sports gaming laws.

Gov. Mike DeWine has been just as direct. 

"This is pure and simple gambling," he told News5. 

Kalshi, which did not receive a letter because it was already the subject of the court case, maintains the opposite. 

"Markets can't operate when the rules change at every state line, which is why Congress created a single federal regulator with nationwide rules," spokesperson Dani Lever said.

For Ohio bettors, the practical picture is unchanged: Ohio sportsbooks are licensed by the commission, require users to be 21 or older, and pay a 20% tax on sports betting receipts. Confirming that an operator holds an Ohio license before depositing is the simplest safeguard.

What to watch is licensees' responses after Oct. 30, whether the commission acts on any suitability reviews, and how the federal court handles Polymarket's challenge. Morrison said the commission has held productive conversations with several of the 10 companies and that the matters remain under investigation.

If you or someone you know has a gambling problem, call the Ohio Problem Gambling Helpline at 1-800-589-9966 or 1-800-MY-RESET, or text 800GAM (800426). Help is free and confidential.