Kalshi Hit With $5 Million Fine in Ohio for Allegedly Running Unlicensed Sportsbook
Posted on: April 15, 2026, 12:53h.
Last updated on: April 15, 2026, 12:53h.
- Ohio has fined Kalshi $5 million for running an illegal sportsbook
- A recent federal ruling in Ohio found that the Commodity Exchange Act does not preempt Ohio’s ability to dictate what forms of gambling are allowed
Prediction market Kalshi has been ordered to pay a $5 million fine to the Ohio Casino Control Commission (OCCC) for conducting what the state gaming regulatory agency believes to be an unlicensed sportsbook.
The OCCC regulates casino gambling, sports betting, fantasy sports, and skill-based amusements in Ohio. The Commission alleges that Kalshi’s trading contracts involving the outcomes of sporting events constitute sports betting. Therefore, the online platform needs to obtain a sports wagering license to take wagers in the Buckeye State.
“The Commission takes its regulatory responsibilities to ensure compliance with the law and the integrity of sports gaming in Ohio seriously,” the OCCC said in a release.
Kalshi is federally regulated by the Commodity Futures Trading Commission.
Under the second Trump administration, the CFTC has moved to solidify the legality of sports event contract trading on prediction markets. Many states, however, have sued prediction markets and the CFTC on the grounds that the trading operators are stepping on state gaming laws.
Ohio put Kalshi on notice today that its prediction markets are unlawful gaming. A federal court already agreed with our reading of the law,” said Ohio Attorney General Dave Yost. “I wouldn’t bet on how long Kalshi will be operating in Ohio.”
Earlier this year, a federal judge ruled that Kalshi’s prediction markets involving sports constitute illegal gambling. Judge Sarah Morrison ruled that the Commodity Exchange Act does not preempt Ohio’s authority to determine what forms of gambling are allowed within its borders.
Kalshi Response
Kalshi continues to defend that it has the right, as dictated by the federal government, to facilitate the buying and selling of events tied to sports. A recent note from analysts at Jefferies concluded that prediction markets should expect federal court losses in the years ahead, especially if the matter reaches the Supreme Court.
For now, the CFTC says its licensed prediction markets, operating as Designated Contract Markets, can offer shares linked to sports outcomes.
“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,” a statement from Kalshi read.
Kalshi has fielded more favorable court rulings in other jurisdictions. In the District Court of Washington, DC, a judge sided with the prediction market in that its contracts do not meet the definition of gambling. A federal court in Arizona said the state cannot prosecute Kalshi on illegal gambling charges. And New Jersey’s Third Circuit said gaming regulators do not have authority over Kalshi.
OCCC: Kalshi Promotes Sports Betting
Matt Schuler, the executive director of the Ohio Casino Control Commission, says while Kalshi maintains in court that it isn’t engaged in gambling, its marketing materials tell a different story.
“Kalshi’s marketing materials routinely describe its sports event contract offerings as ‘sports betting’ and compare them to bets offered by major sportsbooks,” said Schuler. “Kalshi’s sports gaming offerings utilize quintessential wagering terminology like spreads, totals, and props.”
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