Ohio Orders 10 Prediction Markets to Halt Sports Contracts
United States.- 7 October 2026 | www.zonadeazar.com The Ohio Casino Control Commission has ordered ten prediction-market platforms and brokers to stop offering sports event contracts to users located in the state.
The cease-and-desist letters were dated 2 October and give the companies until 16 October to confirm in writing that they have stopped offering the products.
Ten Companies Targeted
The notices were sent to:
- Underdog.
- Gemini Titan.
- Coinbase.
- ProphetX.
- Novig.
- Robinhood Derivatives.
- Polymarket US.
- Plus500US Financial Services.
- Moomoo Financial.
- Webull Financial.
Nine of the companies received their first such notice.
Robinhood had already been subject to a previous Ohio order in March 2025.
Kalshi Not Included
Kalshi was not among the ten recipients of this latest enforcement round.
The company is already involved in a separate legal dispute with Ohio, and that litigation produced the federal appeals ruling now being relied upon by the state regulator.
Sixth Circuit Ruling
Ohio’s action follows a 25 September ruling by the US Court of Appeals for the Sixth Circuit.
In KalshiEx LLC v. Schuler, the court found that the Commodity Exchange Act did not automatically pre-empt Ohio’s sports gaming law as applied to the sports event contracts at issue.
The decision gave the state greater room to enforce its own regulatory framework.
Ohio Treats the Products as Sports Betting
The commission argues that the sports contracts offered by these platforms function as wagering products.
Customers win or lose money depending on match outcomes, team performance or specific sporting statistics.
Ohio therefore considers the offering of these products to state residents to require a state sports betting licence.
No State Sports Betting Licences
None of the ten companies named in the notices holds a sports gaming licence issued by the Ohio Casino Control Commission.
The regulator warned that unlicensed activity could lead to administrative, civil and potentially criminal enforcement under state law.
Brokers Also Covered
The order reaches beyond exchanges that create the contracts.
It also applies to intermediaries allowing Ohio customers to access sports event contracts listed on federally designated contract markets.
This interpretation covers brokerage apps routing customer orders to third-party exchanges.
Robinhood Case
Robinhood previously received a cease-and-desist notice in March 2025.
At the time, the company argued that it acted as a futures commission merchant and offered contracts traded on federally regulated markets.
Ohio paused parts of its enforcement while Kalshi’s litigation moved through the courts.
Following the Sixth Circuit ruling, the state has renewed its position.
Potential Enforcement
The regulator warned that companies failing to comply may face:
- Administrative action.
- Civil proceedings.
- Nuisance-related enforcement.
- Criminal action where applicable.
Ohio may also seek financial penalties connected with revenue generated through contracts offered to people in the state.
Fragmented Legal Landscape
The wider legal question remains unsettled across the United States.
While the Sixth Circuit supported Ohio’s ability to apply state law, other federal courts have taken different approaches in similar disputes.
That leaves unresolved the broader boundary between federal commodities regulation and state gambling authority.
Industry Context
Sports prediction markets have become one of the most contentious regulatory issues in US gaming during 2026.
Several states argue that certain event contracts function in practice as sports bets and should therefore be subject to local licensing, taxation and consumer-protection rules.
Platforms have countered in litigation that some of these products operate within federally regulated markets.
Next Steps or Impact
The ten companies have until 16 October to confirm compliance with Ohio’s orders.
The next stage will depend on whether they withdraw their sports products from the state, alter their offerings or challenge the regulator’s action in court.
Ohio’s move therefore adds further pressure to the growing conflict between state sports betting regulation and federally regulated prediction markets.
Editó: @fonta
