COLUMBUS, Ohio – Ohio’s gaming regulator has proposed a $5 million fine against Kalshi, accusing the prediction‑market operator of offering unlicensed sports gaming in the state as a broader national fight over how such platforms should be regulated intensifies.
The Ohio Casino Control Commission issued the enforcement notice April 14 to KalshiEX LLC, alleging the company operated in Ohio without the required license and offered wagers that fall under the state’s sports gaming laws. Regulators said Kalshi’s activity meets the definition of gaming under Ohio law, despite the company’s argument that it is regulated solely as a federally licensed exchange under the Commodity Futures Trading Commission.
“The Commission takes its regulatory responsibilities to ensure compliance with the law and the integrity of sports gaming in Ohio seriously,” the agency said in a statement.
Kalshi called the action “disappointing,” noting its ongoing litigation with the state and recent rulings elsewhere that allowed the company to continue operating.
“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,” the company said. “We are reviewing the Gaming Commission’s letter.”
Ohio officials said Kalshi has an estimated 35,000 users in the state and argued the company has not demonstrated compliance with consumer‑protection safeguards required under Ohio law. Attorney General Dave Yost echoed the commission’s position, saying a federal court has already agreed with the state’s interpretation.
The dispute is part of a widening national clash between prediction‑market operators and state regulators. Kalshi and rival Polymarket maintain that state gambling laws do not apply to their federally regulated exchanges. Several states, including Nevada, have taken enforcement action, while Kalshi has filed lawsuits in Montana and other jurisdictions. The company has secured temporary operating wins in New Jersey and Arizona.
Meanwhile, the CFTC has launched its own lawsuit against multiple states, governors, and attorneys general over attempts to regulate prediction markets under local gaming laws.
