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- The Ohio Casino Control Commission is aggressively cracking down on the prediction market sector, ordering Robinhood Derivatives and several other platforms—including Coinbase, Polymarket, and Webull—to comply with a cease-and-desist order against offering sports-event contracts by October 16.
- The state’s enforcement push, emboldened by a recent Sixth Circuit ruling affirming Ohio’s right to apply local gambling laws to these products, threatens to fracture the rapidly growing event-contract industry into a complex, state-by-state regulatory patchwork.
Robinhood Derivatives must comply with Ohio’s cease-and-desist order by Oct. 16, intensifying state pressure on prediction-market platforms as Robinhood’s event-contract business grows rapidly.
The development matters because it points to a possible state-by-state squeeze on sports-event contracts, even when platforms argue they operate under federal commodities rules. For companies including Robinhood, Coinbase, Polymarket, Gemini, ProphetX, and Webull, that could mean remaining active in some jurisdictions while losing access in others.
Ohio ruling sharpens the state enforcement threat
According to the source report, the Ohio Casino Control Commission reasserted its order against Robinhood Derivatives and said the company must comply by Oct. 16. Ohio also sent similar notices to nine other firms, including Coinbase Global, Gemini Space Station, Polymarket, ProphetX, and Webull Corporation.
The report said the pressure increased after the Sixth Circuit ruled on Sept. 25 that Ohio can enforce its gambling laws against sports-event contracts, despite arguments tied to federal commodities law. Ohio’s order applies not only to companies directly offering those contracts, but also to firms facilitating them through futures commission merchant or designated contract market activities.
That creates a more fragmented regulatory picture for prediction markets in the U.S. The source notes that platforms could remain federally regulated while still being blocked or limited in individual states.
Robinhood’s event-contract business has become more important
The timing matters for Robinhood because event contracts have become a meaningful revenue driver. The company’s event-contract revenue climbed more than tenfold year over year to $156 million in Q2 2026, while volume reached a record 13.6 billion contracts.
The report also said Robinhood’s joint venture with Susquehanna began routing event contracts in June and contributed $17 million in second-quarter event-contract revenue.
That growth helps explain why a wider state clampdown could complicate Robinhood’s strategy. The article specifically pointed to pressure on the company’s Rothera initiative if more states follow Ohio’s lead.
Connecticut shows other states may act too
Ohio is not the only state taking action. In Connecticut, the report said ProphetX, Gemini Space Station, and Webull have exited after regulatory action. Robinhood, Coinbase, and Polymarket remain in discussions with regulators there.
What comes next is whether more states adopt Ohio- or Connecticut-style enforcement. The immediate date to watch is Oct. 16, when Robinhood Derivatives is required to comply with Ohio’s renewed order.
For now, the central issue is not whether demand exists. Robinhood’s event-contract business has shown strong growth. The question is whether that growth can continue if access starts getting decided one state at a time.
Source: As reported by tradingview.com.
