Ohio Governor DeWine Declares Kalshi Sports Betting Illegal Under State Law

Ohio Governor Mike DeWine announced plans to enforce state gambling laws against the prediction market platform Kalshi, targeting its sports-related contracts. bloomingbit.io reported that the state intends to treat these offerings as unauthorized sports betting following a key federal court ruling.

The Bottom Line

• Governor Mike DeWine classified Kalshi’s sports prediction contracts as illegal gambling under Ohio law.
• The decision follows the 6th U.S. Circuit Court of Appeals’ refusal to block state enforcement actions against the platform.
• The Ohio Casino Control Commission previously issued a $5 million pre-enforcement penalty notice to Kalshi for operating un-licensed sports wagering.

Ohio Governor Targets Kalshi Over Sports Contracts

Ohio Governor Mike DeWine stated that Kalshi attempts to bypass sports gambling regulations under the guise of an operation known as a prediction market. According to reporting from bloomingbit.io, DeWine maintained that the platform must operate under the exact same regulatory framework applied to other gaming providers in the state.

The announcement follows a legal development from the 6th U.S. Circuit Court of Appeals. On September 25, the appellate court maintained a lower court ruling that rejected Kalshi’s request for an injunction to halt Ohio’s regulatory enforcement. The judicial panel concluded that Kalshi failed to sufficiently prove its sports prediction contracts fall under the exclusive regulatory jurisdiction of the federal Commodity Futures Trading Commission (CFTC). Furthermore, the court determined that federal law does not exclude the application of state gambling statutes.

Regulatory Conflict and Financial Penalties

Kalshi operates as an exchange hosting event-based contracts tied to political elections, weather patterns, and economic metrics. The platform introduced sports-related contracts last year, triggering direct scrutiny and conflict with state regulators. The Ohio Casino Control Commission characterized these offerings as unauthorized sports betting, demanding that Kalshi either suspend the service or acquire a state operating license to comply with local taxation and oversight mandates.

In April, the commission issued a pre-enforcement notification informing Kalshi of a $5 million penalty for operating illegal sports betting activities. Kalshi responded by filing a lawsuit to counter the state’s intervention, maintaining that its sports prediction contracts constitute federally regulated financial instruments rather than wagers defined by state law.

Entity	Action Taken	Regulatory Stance
Ohio Casino Control Commission	Issued $5 million pre-enforcement penalty notice	Classifies sports contracts as unlicensed sports betting
6th U.S. Circuit Court of Appeals	Denied Kalshi’s injunction request on Sept. 25	Ruled federal law does not preempt state gambling rules
Kalshi	Filed federal lawsuit against state regulators	Maintains contracts are federally governed financial products

Platform Opposition and Federal Dispute

Kalshi representatives criticized the appellate court’s refusal to block state enforcement. A company spokesperson argued that fragmented regulations across individual state lines obstruct efficient market operations, maintaining that the industry requires a unified national federal standard instead.

State enforcement actions will proceed in Ohio following the rejection of the platform’s injunction. Legal arguments between state regulators and federal market participants continue as the dispute over jurisdictional boundaries moves forward.