(AsiaGameHub) – Ohio’s gaming regulator is intensifying its crackdown on Kalshi, revealing its intention to levy a $5 million penalty against the prediction market.
The Ohio Casino Control Commission (OCCC) has served a notice of intent, contending that Kalshi’s sports event contracts constitute unlicensed sports wagering in the state. The regulator asserts these contracts permit users to bet on results like game winners and athlete statistics.
The OCCC stated:
Kalshi’s ‘sports event contract’ offerings specifically enable Ohio consumers to wager or bet on uncertain outcomes of sporting events like professional and collegiate games and the individual performance statistics of athletes.
The commission alleges Kalshi has been running without an Ohio license since January 2025 and maintains it possesses full authority to intervene, being tasked with “ensuring the integrity of sports gaming in the State of Ohio.”
This action comes after an earlier cease-and-desist order from April 2025, which Kalshi is accused of disregarding. The regulator now charges the firm with several violations, such as non-cooperation with officials and persisting in operations after formal warnings.
The OCCC added:
Based upon the foregoing, and pursuant to Ohio law, Kalshi is subject to administrative action for operating or conducting sports gaming without a license, failing to cooperate with the Commission (which includes failing to abide by the Commission’s cease and desist order and failing to provide the Commission with the information it requested), and engaging in conduct that undermines the integrity, or public confidence in, sports gaming in Ohio.
Authorities also highlighted compliance shortcomings, such as permitting users aged 18 to 20 to engage with sports contracts, not remitting state taxes on gaming revenue, and lacking mandated financial protections.
Kalshi has 30 days to appeal for a hearing. In response to the notice, the company indicated it will contest the action.
Elisabeth Diana, Head of Communications, said:
We’re reviewing the letter and will protect our interests to the maximum extent provided by the law. Disappointing, considering our ongoing litigation with the state and recent rulings in other courts confirming our right to operate as a federally licensed exchange.
The conflict forms part of a wider legal fight between Kalshi and Ohio officials. The company had earlier filed suit against the regulator and the state attorney general, contending its contracts are regulated federally by the Commodity Futures Trading Commission (CFTC), not by state gambling statutes.
A federal judge has already rejected Kalshi’s bid for a preliminary injunction, noting the company did not sufficiently prove its entitlement to that remedy. The lawsuit proceeds, concurrent with analogous legal disputes involving Kalshi in other states.
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