Ohio is the latest US state to close trading platforms that offer event contracts which resemble sports betting.
Trading platforms Kalshi, Robinhood, and Crypto.com were ordered on Monday to cease and desist from offering event contracts on sporting events in Ohio by the Ohio Casino Control Commission (OCCC).
The order from the OCCC states that the sports event contracts offered by the companies meet the definition of sports gaming under Ohio law, meaning that they must be licensed by the state to be lawful.
The OCCC acknowledges that the Commodity Futures Trading Commission (CFTC) has historically regulated event futures contracts but notes that offering futures contracts on sporting events is a novelty.
“Purchasing a contract based on which team a person thinks will win a sporting event is no different than placing a bet through a traditional sportsbook,” said Ohio Casino Control Commission executive director Matthew Schuler.
“The only difference is that these event contracts do not have the consumer protections required under Ohio law and are accessible to Ohioans under 21 years of age. The Commission must take action to fulfill its statutory responsibilities and ensure the integrity of sports gaming in Ohio.”
The Commission has set a deadline of April 14 by which Kalshi, Robinhood, and Crypto.com must notify it of their compliance with the order.
The move to prevent the trading platforms from offering sports event contracts in Ohio follows similar action by gambling regulators in New Jersey and Nevada, which Kalshi is challenging in court.
Ohio’s regulated sports betting market generated total handle of $8.88 billion (+16 per cent) in 2024, earning the state’s 14 licensed operators total taxable revenue of $904.2 million (-3 per cent).