Ohio Pushes to Regulate Prediction Markets and Ban Election Betting
United States – 12 November 2026 – www.zonadeazar.com Ohio Democratic state senator Bill DeMora has renewed his efforts to regulate sports prediction markets and prohibit contracts linked to political election outcomes.
The proposals would require platforms such as Kalshi and Polymarket to comply with the same obligations as traditional sports betting operators, including state licensing, taxation and consumer protection requirements.
The renewed legislative push follows a federal appeals court ruling that supported the application of state gambling laws to certain sports event contracts.
Two Bills Target Different Prediction Markets
DeMora has introduced two legislative proposals addressing different areas of the prediction market industry.
Senate Bill 430 (SB 430), introduced on 27 April 2026, would classify contracts based on sporting results as sports betting under Ohio law.
Platforms offering these products would need to obtain licences from the Ohio Casino Control Commission (OCCC) and comply with existing gambling regulations.
Meanwhile, Senate Bill 479 (SB 479), introduced on 13 October, seeks to prohibit contracts linked to political elections, nominations, party conventions and appointments.
The second proposal is co-sponsored by Democratic senators Nickie Antonio, Willis Blackshear Jr. and Casey Weinstein.
Election Betting at the Centre of the Debate
Licensed sportsbooks in Ohio are already prohibited from accepting wagers on political elections.
However, prediction market platforms offer contracts based on future events, which their operators argue are financial instruments rather than traditional gambling products.
SB 479 would explicitly extend the existing election betting prohibition to these contracts.
The proposal aims to establish consistent legal treatment for transactions linked to political outcomes, regardless of the platform offering them.
Neither bill has been enacted, and both remain subject to the legislative process.
Federal Court Ruling Supports State Authority
On 25 September 2026, the US Court of Appeals for the Sixth Circuit issued an important ruling in litigation involving Kalshi and regulators in Ohio and Tennessee.
Kalshi argued that its sports event contracts were exclusively regulated by the Commodity Futures Trading Commission (CFTC) under federal derivatives legislation.
However, a three-judge panel unanimously rejected the company’s attempt to prevent enforcement of state gambling laws.
The court concluded that Kalshi had not demonstrated that its sports contracts qualified as financial instruments exempt from the relevant state regulations.
The ruling did not determine the final merits of the dispute but allowed state enforcement efforts to continue.
Polymarket, Robinhood and Coinbase Receive Notices
Following the ruling, the Ohio Casino Control Commission intensified its enforcement activity against platforms offering sports event contracts.
On 2 October, the regulator issued cease-and-desist notices to ten operators and intermediaries, including:
- Polymarket.
- Robinhood.
- Coinbase.
The companies were instructed to stop offering contracts based on sporting outcomes within Ohio.
Robinhood subsequently agreed to discontinue new sports event contracts from 2 November, while appeal proceedings continue.
Regulators agreed to suspend certain enforcement actions during the appeal process.
Kalshi Continues Its Legal Challenge
On 9 October, Kalshi requested reconsideration of the Sixth Circuit’s decision, seeking both a panel rehearing and a review by the full court.
On 28 October, the court directed Ohio and Tennessee to respond to the petition by 12 November.
This procedural step does not mean the court has agreed to reconsider its earlier ruling.
The legal landscape also includes conflicting decisions from other federal appellate courts.
The Third Circuit ruled in Kalshi’s favour in a New Jersey case, while the Ninth Circuit reached a different conclusion in Nevada.
New Jersey has requested that the US Supreme Court review the dispute.
Ohio Seeks Additional Tax Revenue
One of DeMora’s principal arguments is that sports prediction markets should be taxed under the same framework as licensed sportsbooks.
The senator believes the absence of state licensing requirements is resulting in substantial lost revenue.
He estimates that Ohio missed out on hundreds of millions of dollars during the previous two-year budget cycle.
This figure is the senator’s own estimate rather than an independently confirmed government calculation.
Republican Governor Mike DeWine has also described sports prediction contracts as a form of gambling.
Legislation Could Return in 2027
SB 430 was referred to the Senate’s gaming committee in May, while SB 479 was introduced in October.
Neither proposal has received a vote on the Senate floor.
DeMora has confirmed that he intends to reintroduce the legislation in 2027 if it fails to advance during the current legislative session.
The coming year will also bring political changes in Ohio, including a new state administration taking office in January.
These developments could influence the timetable for considering the proposals.
Industry Impact and Next Steps
Ohio’s debate reflects one of the central regulatory challenges facing prediction markets in the United States: determining when contracts linked to sporting events should be treated as financial products and when state gambling laws apply.
For companies including Kalshi, Polymarket and Robinhood, future judicial and legislative decisions could change the conditions under which their products are offered.
Attention will now focus on pending appeals and the potential reintroduction of state legislation in 2027.
Ohio is seeking specific rules for sports prediction markets and a prohibition on election-related contracts amid a nationwide dispute over the respective powers of state and federal regulators.
Editó: @fonta
