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Bonus TL;DR
- Most prediction market platforms defied Ohio’s cease-and-desist deadline, keeping their sports markets active while citing federal authority over state regulation.
- Ohio officials threatened criminal and civil penalties to force compliance and potentially recover revenue from unauthorized sports contract sales.
Most prediction market platforms targeted by Ohio’s shutdown demands kept their sports markets active after Friday’s compliance deadline, according to the Ohio Capital Journal.
Ohio officials consider the offerings illegal gambling and have threatened criminal and civil penalties. Operators, including Polymarket and Robinhood, maintain that they fall under federal oversight rather than state regulation, leaving the authority to regulate their sports contracts disputed.
The Ohio Casino Control Commission sent cease-and-desist letters to 10 companies on Oct. 2, requiring each to respond by Friday and confirm it had stopped offering the sports markets. According to the outlet’s Oct. 20 report, most platforms remained available and unchanged at the close of business Friday.
The commission told the outlet that Plus500US said it would stop offering sports contracts. That statement does not establish whether the company completed the shutdown.
Ohio Officials Threaten Penalties for Sports Contracts
Gov. Mike DeWine said he had seen prediction market advertisements during baseball games despite the state’s demands.
“This is pure and simple gambling,” DeWine said.
Interim Attorney General Andy Wilson warned that Ohio would act against companies that did not comply.
“They need to come into compliance, or we’re gonna force them into compliance,” Wilson said.
Wilson also said he could recover money the companies made from sports contracts while operating in Ohio. The report describes threatened enforcement, rather than announcing a new penalty or recovery of funds.
Operators Argue Federal Rules Govern Their Markets
Polymarket and Robinhood responded with statements emphasizing federal authority over their businesses, according to the Capital Journal.
Kalshi did not receive one of the new cease-and-desist letters because it had already received a court order in the case. Its spokesperson, Dani Lever, defended a nationwide regulatory framework.
“Markets can’t operate when the rules change at every state line, which is why Congress created a single federal regulator with nationwide rules,” Lever said.
The Capital Journal reported that none of the prediction markets follow Ohio’s sports betting regulations. Those rules require bettors to be at least 21.
Case Western Reserve University business law expert Eric Chaffee said compliance could require a gaming license, along with disclosure and other compliance obligations.
Whether Ohio follows through with criminal or civil penalties, and whether operators stop offering sports contracts in the state, remain unresolved.
More from bonus.com – Ohio Senator Pushes Prediction Market Regulation After Sixth Circuit Decision – Ohio Issues Cease-and-Desist Letters to 10 Prediction Platforms and Brokers – Ohio Pressure Raises New Questions for Robinhood’s Prediction-Market Expansion
Source: As reported by ohiocapitaljournal.com.
This article was created with the assistance of AI and is monitored by our editorial team.
