Ohio Tells Kalshi, Robinhood, Crypto.com to Exit Over Prediction Markets

Ohio’s Cease-and-Desist Hits Hard

The OCCC ruled these offerings count as sports gaming under Ohio law, requiring a state license none of them hold. Executive Director Matthew Schuler didn’t mince words: “Buying a contract on who’ll win a game is just like betting with a sportsbook—except there’s no consumer protection and kids under 21 can play.” The trio’s got until April 14 to comply and report back in writing.

The order bans all sports contract activity, offering, aiding, or enabling, for state residents. Schuler stressed it’s about keeping sports gaming legit, especially with Ohio’s $8 billion in legal bets in 2024, per OCCC data.

Ohio is the third state in a month to kick prediction platforms out, following New Jersey and Nevada Fight over prediction markets heats up.

States Pile On, Kalshi Pushes Back

Recall, that New Jersey’s Division of Gaming Enforcement (NJDGE) hit Kalshi and Robinhood with orders last week, calling their sports contracts “unauthorized wagering” under the state’s Sports Wagering Act.

NJDGE nailed Kalshi for bets on New Jersey college games, a constitutional no-no, and Robinhood for NCAA March Madness tie-ins. Both were told to stop and void resident wagers; Robinhood pulled NCAA markets fast.

Nevada’s Gaming Control Board (NGCB) set the precedent here, ordering Kalshi to drop sports and election contracts by March 14, tagging them unlicensed pools.

Kalshi’s fighting back. It sued New Jersey and Nevada in federal court, claiming its peer-to-peer swaps fall under the Commodity Futures Trading Commission (CFTC), not state gambling laws.

CEO Tarek Mansour said regulators brushed off outreach, forcing the legal play. “States are misreading us—we’re not a sportsbook,” he posted on LinkedIn. Crypto.com and Robinhood haven’t signaled lawsuits yet, but Ohio’s order ups the ante.

Prediction Markets on the Edge

This triple-state crackdown’s not a coincidence, with Massachusetts also eyeing curbs, per legislative buzz. States seem spooked ahead of a CFTC roundtable in late April 2025, expected to lean pro-prediction markets after a February pivot easing oversight.

Kalshi’s $2 billion in trades since 2023, per company stats, shows the stakes, but states want control over the $11 billion U.S. betting pie, per AGA 2024 figures.

Operators see a flip side. DraftKings, with a prediction platform in the wings, is watching closely, per industry whispers. Ohio’s move could spark more bans or push the CFTC to draw a clearer line. For now, Kalshi’s lawsuits and Ohio’s deadline keep the tension high.