Prediction Market Kalshi Suing Ohio Regulator And State Attorney General’s Office

Publish Date: 10/08/2025
Fact checked by: Collin
Key Points
  • Kalshi has filed suit against the Ohio Casino Control Commission and the state Attorney General’s office
  • Kalshi lawyers argue that the state is overstepping its authority by preventing them from offering prediction markets on sports
  • Ohio regulators issued a cease-and-desist letter, insisting that Kalshi is offering unlicensed sports betting

Columbus, Ohio

The ongoing battle between prediction markets and state gambling regulators is heating up in Ohio. Prediction market operator Kalshi has filed suit against the Ohio Casino Control Commission (OCCC) and the state Attorney General’s office.

The lawsuit was filed on October 7 in the U.S. District Court for the Southern District of Ohio in Columbus. The case has been assigned to Chief Judge Sarah D. Morrison.

Kalshi's lawyers argue that the state is overstepping its authority by preventing them from offering prediction markets on sports events.

Kalshi is seeking both a preliminary and permanent injunction that would prevent the two state agencies from enforcing state law against the company. Prediction market sites, such as Kalshi, are operating under federal regulations set by the Commodity Futures Trading Commission (CFTC). They believe that a federal law supersedes a state regulator.

"This action challenges the State of Ohio's intrusion into the federal government's exclusive authority to regulate derivatives trading on exchanges overseen by the Commodity Futures Trading Commission (CFTC)," the suit reads. "Two Ohio agencies seek to prevent plaintiff Kalshi from offering event contracts for trading on its federally regulated exchange."

In its cease and desist order, the Ohio Attorney General's office threatened to take legal action against Kalshi.

"Defendant's actions threaten immediate and irreparable harm, not just to Kalshi, but to its customers and commercial counterparties," the suit argues.  "Defendant's acts also impair Kalshi's existing contracts with consumers and business partners.

"Some of these prospective business partners have millions of active users. The loss of these users, should the business partners acquiesce to the Casino Commission’s unlawful threat, would present a massive disruption for Kalshi financially and reputationally."

All of these arguments must still be proven in court.

Ohio regulators insist that federal law can't overstep state law

Countering Kalshi's main argument, the OCCC insists that the belief that federal regulations don't cancel out existing state laws is unconvincing.

"The Commission is unpersuaded that Ohio law is preempted by federal law as Kalshi contends," Matthew Schuler, executive director of the casino commission, wrote in an Oct. 6 letter sent to Kalshi. "Consequently, to the extent Kalshi chooses to continue to offer unlicensed and unregulated sports gaming in the form of sporting event contracts within Ohio, Kalshi will be violating Ohio law."

Kalshi's lawyers are seeking a temporary restraining order. They are also seeking an immediate court hearing on this matter. This injunction would serve to prevent the state from implementing its plan to stop Kalshi from operating on Oct. 20.

Following Michigan's lead, Ohio gambling regulators are also threatening to pull the license of any sports betting sites operating in the state if they opt to venture into the prediction market industry.

Ohio is one of five US states that are now involved in legal action with Kalshi.

Last month, Massachusetts Attorney General Andrea Joy Campbell filed a 43-page lawsuit against the prediction market. The Massachusetts lawsuit accuses Kalshi of promoting and accepting online sports wagers from Massachusetts customers without adhering to state laws governing sports gambling as set out in the licenses issued by the Massachusetts Gaming Commission (MGC).

There is also ongoing litigation involving Kalshi in New Jersey, Maryland, and Nevada.

Massachusetts, Arizona, Illinois, Montana, and Ohio are states that have all issued cease and desist orders against Kalshi.

BetMGM
1.
4.6/5
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
USA
USA Players Welcome
PayPal
Bank Transfer
VIP Preferred
Ohio Casino Control Commission (OCCC)
Bet now
Gambling problem? Call 1-800-GAMBLER or 1-800-MY-RESET (Available in the US) 877-8-HOPENY or text HOPENY (467369) (NY) 1-800-327-5050 (MA), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR). 21+ only. Please Gamble Responsibly. See BetMGM.com for Terms. First Bet Offer for new customers only (if applicable). Subject to eligibility requirements. Bonus bets are non-withdrawable. In partnership with Kansas Crossing Casino and Hotel. Promotional offers not available in Mississippi, New York, Ontario, or Puerto Rico.
DraftKings
2.
4.3/5
New DraftKings Customers: Spend $5+ Get $150 in Bonus Bets *Paid Within 14 Days
USA
USA Players Welcome
PayPal
VIP Preferred
Play+
Ohio Casino Control Commission (OCCC)
Bet now
GAMBLING PROBLEM? CALL 1-800-GAMBLER or 1-800-MY-RESET, (800) 327-5050 or visit gamblinghelplinema.org (MA). Please Gamble Responsibly. 888-789-7777/visit ccpg.org (CT), or visit www.mdgamblinghelp.org (MD), 1-800-981-0023 (PR). GAMBLING PROBLEM? CALL 1-800-GAMBLER or 1-800-MY-RESET, (800) 327-5050 or visit gamblinghelplinema.org (MA). Please Gamble Responsibly. 888-789-7777/visit ccpg.org (CT), or visit www.mdgamblinghelp.org (MD), 1-800-981-0023 (PR). 21+ and present in most states. (18+ DC/NH/PR/WY). Void in CAN. Eligibility restrictions apply. On behalf of Boot Hill Casino (KS). Pass-thru of per wager tax may apply in IL. 1 per new DraftKings customer. $5+ first-time bet req. Max. $150 issued as non-withdrawable Bonus Bets that expire in 7 days after issuance. Stake removed from payout. Reward issued as $50 in Bonus Bets every 7 days via click-to-claim for 14 days. 7 days = 168hrs. Terms: sportsbook.draftkings.com/promos. Ends 8/23/26 at 11:59 PM ET. Sponsored by DK.
FanDuel
3.
4.2/5
New Users – Bet $5 Get $200 in Bet Reset Tokens for 5 Days
USA
USA Players Welcome
PayPal
Bank Transfer
Cheque
Ohio Casino Control Commission (OCCC)
Bet now
Gambling Problem? Call 1-800-GAMBLER or 1-800-MY-RESET. Call 1-888-789-7777 or visit ccpg.org/chat (CT). Hope is here. GamblingHelplineMA.org or call (800) 327-5050 for 24/7 support (MA). Visit www.mdgamblinghelp.org (MD). Call 1-877-HOPENY or text HOPENY (467369) (NY). 21+ (18+ DC, IA, KY, WV) only. New users only or text HOPENY (467369) (NY). Casino, First online real money wager only. $5 first deposit required. Min $5 wager required for 5 consecutive days. Bonus issued as non-withdrawable Bet Reset tokens. Refund from token issued as nonwithdrawable bonus bet that expire 7 days after receipt. Max refund $200 per day. Restrictions apply, including token expiration. See full terms at fanduel.com/sportsbook. Call 1-877-770-7867 (LA).
Fanatics
4.
3.8/5
10 x $100 bet match in FanCash
USA
USA Players Welcome
Venmo
PayPal
Apple Pay
Ohio Casino Control Commission (OCCC)
Bet now
Must be 21+. GAMBLING PROBLEM? CALL 1-800-GAMBLER OR CALL 1-800-MY-RESET, www.mdgamblinghelp.org (MD), (800)-327-5050 or gamblinghelplinema.org (MA), Call (877)8-HOPENY or text HOPENY (467369) (NY), (888) 789-7777 or ccpg.org (CT), morethanagame.nc.gov (NC), 1800gambler.net (WV)
ESPN Bet
5.
USA
USA Players Welcome
Visa
Mastercard
Trustly
Ohio Casino Control Commission (OCCC)
Best Alternative
BetMGM Open BetMGM
Read Also
Latest News
California Governor Newsom Signs Bill Banning Sweepstakes Casinos
With a stroke of his pen, California Governor ...
NCAA Proposal Would Allow Student Athletes To Bet On Pro Sports
In a somewhat surprising move, the NCAA Administrative ...
Prediction Market Kalshi Suing Ohio Regulator And State Attorney General’s Of...
The ongoing battle between prediction markets and state ...
Las Vegas Sands Closes Its Digital Gambling Arm
Evidently, you can't teach an old dog new ...
Michigan Regulator Warns Online Sportsbooks Not To Enter Prediction Markets
The state gambling regulatory body in Michigan is ...
Top Brands
Top Bonuses
CrownCoinsCasino
CrownCoinsCasino
CrownCoinsCasino Review
4.7/5
MyPrize.US
4.7/5
LoneStar Casino
LoneStar Casino
LoneStar Casino Review
4.7/5
Stake.us
4.7/5
Jackpota
4.7/5
CrownCoinsCasino
CrownCoinsCasino Promo
Get 200% More Coins on First Purchase - 1.5M CC + 75 SC
T&Cs apply
4.7/5
MyPrize.US
MyPrize.US Promo
Get up to 750K Gold Coins + 65 SC FREE
T&Cs apply
4.7/5
LoneStar Casino
LoneStar Casino Promo
Get up to 500K Gold Coins + 105 FREE SC + 1000 VIP points
T&Cs apply
4.7/5
Stake.us
Stake.us Promo
25 SC and 25K GC signup bonus
T&Cs apply
4.7/5
Jackpota
Jackpota Promo
100% More Coins: 80,000 GC + 40 FREE SC + 75 Free SC Spins
T&Cs apply
4.7/5
Our Team
Collin
Collin
PromoGuy Legend
PB
PB
Our man for Picks & Guides
Ryan
Ryan
Expected Value Evangelist
Meghan
Meghan
Marketing Manager
Joseph Scalise
Joseph Scalise
Betting Analyst
Bob Duff
Bob Duff
Author
Follow our free plays
Choose your preferred channel:
Wanna make consistent profits with online sports betting?

21+ and present in OH. Gambling Problem? Call 1-800-GAMBLER.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.
CloudflareSSL
Close
Top 3 Sportsbook Bonuses
BetMGM
BetMGM Promo
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
Our Favorite
T&Cs and 21+ apply
Code:
Open BetMGM
Get Bonus
DraftKings
DraftKings Promo
New DraftKings Customers: Spend $5+ Get $150 in Bonus Bets *Paid Within 14 Days
Quick Draft
T&Cs and 21+ apply
Code:
Open DraftKings
Get Bonus
FanDuel
FanDuel Promo
New Users – Bet $5 Get $200 in Bet Reset Tokens for 5 Days
Newcomer
T&Cs and 21+ apply
Code:
Open FanDuel
Get Bonus
Wanna make consistent profits with online sports betting?