Ohio Orders 10 Prediction Markets to Stop Offering Sports Contracts

United States.- 8 October 2026 | www.zonadeazar.com The Ohio Casino Control Commission, OCCC, has ordered 10 prediction-market operators and brokers to stop offering sports event contracts within the state.

The companies must suspend the activity and confirm compliance with the regulator by 16 October 2026.

Ten Companies Targeted

Cease-and-desist notices were issued to:

  • Underdog.
  • Gemini Titan.
  • Coinbase.
  • ProphetX.
  • Novig.
  • Robinhood Derivatives.
  • Polymarket US.
  • Plus500US Financial Services.
  • Moomoo Financial.
  • Webull Financial.

None of the companies holds an Ohio sports betting licence.

Ohio Treats Contracts as Sports Gaming

The OCCC maintains that sports event contracts constitute sports gaming under state law.

Platforms therefore cannot solicit, accept or intermediate those products for Ohio residents without the appropriate licence.

Scope of the Orders

The notices prohibit the companies from:

  • Soliciting sports-event contract orders.
  • Accepting trades from Ohio residents.
  • Operating designated contract markets offering those products in the state.
  • Acting as futures intermediaries for those contracts.

Sixth Circuit Ruling

The enforcement action relies heavily on a 25 September 2026 ruling from the US Court of Appeals for the Sixth Circuit.

In KalshiEx LLC v. Schuler, the court upheld Ohio’s refusal to grant Kalshi a preliminary injunction against state enforcement.

CEA Does Not Automatically Pre-empt State Law

The court held that the Commodity Exchange Act does not automatically pre-empt state sports betting laws in this context.

It found that state gambling rules do not directly regulate Designated Contract Markets but instead have only incidental effects on them.

Kalshi Not Included

Kalshi was not among the 10 recipients of the latest notices.

The company remains involved in separate litigation with Ohio, meaning its position continues to be addressed through that court process.

Robinhood Previously Warned

Robinhood Derivatives had already received an Ohio notice in 2025.

The company has previously argued that certain sports contracts are swaps regulated at federal level rather than sports bets governed by state law.

Consumer Protection

OCCC Interim Executive Director Andromeda Morrison said unlicensed products lack consumer safeguards required under Ohio law.

The regulator highlighted protections for younger and vulnerable consumers in particular.

Possible Enforcement Actions

Failure to comply could result in:

  • Administrative proceedings.
  • Civil action.
  • Nuisance claims.
  • Criminal enforcement.

The OCCC is demanding an immediate halt to the activity and formal confirmation before the deadline.

Federal Courts Remain Divided

Ohio’s position contrasts with decisions in other federal courts.

In Illinois, a judge recently granted Kalshi a preliminary injunction after finding that certain contracts were likely swaps and that parts of state gambling law could be federally pre-empted.

The differing decisions leave the broader legal framework unresolved.

Regulatory Conflict Intensifies

The case reflects a growing dispute between state regulators and prediction-market operators.

States defend their traditional authority over sports betting, while several platforms argue that their products are federally regulated financial contracts overseen by the Commodity Futures Trading Commission, CFTC.

Next Steps or Impact

The next key date is 16 October, when the 10 companies must confirm they have stopped offering sports contracts in Ohio.

The action strengthens the position of state regulators following the Sixth Circuit ruling, although the national picture remains fragmented because federal courts are reaching different conclusions in other jurisdictions.

The outcome of these disputes will be critical in determining how far states can go in regulating sports-related prediction markets.

Editó: @fonta

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