Ohio Issues Directive to Stop Sports Event Betting in Prediction Markets
In a move echoing Nevada and New Jersey, Ohio is cracking down on platforms that offer sporting event contracts, issuing cease-and-desist letters to the likes of Kalshi, Robinhood, and Crypto.com. The Ohio Casino Control Commission (OCCC) claims these businesses flout the law by allowing consumers to wager on sporting events without obtaining the necessary state licenses, while also catering to those under 21 - a no-no in Ohio.
Matthew Schuler, OCCC executive director, leaves no room for ambiguity: "Wagering on who'll win a sporting event, whether via event contracts or traditional sportsbooks, isn't crucially different," Schuler states unequivocally. "The inevitability is that event contracts lack the consumer protections Ohio law demands and are reachable to underage gamblers. Our responsibility is to enforce these statutes and guarantee the integrity of sports gaming in Ohio."
By the books, these event contracts fall under the sports gaming category, meaning Kalshi, Robinhood, and Crypto.com must either seek clearance or shutter their services. OCCC sets the deadline for compliance at April 14. These companies, under federal regulatory oversight unlike traditional sportsbook operators requiring state-specific licenses, now find themselves at odds with state regulators, mostly due to the escalating betting trend on major events like March Madness and the Super Bowl.
Last week, Kalshi took the legal route, suing for declaratory and injunctive relief, with the outcome of this clash between state and federal entities still uncertain. Stay tuned for updates on this developing saga!
In light of the escalating betting trend on major sports events, Fintech companies offering sports-analysis services like Kalshi, Robinhood, and Crypto.com find themselves in a heated dispute with the Ohio Casino Control Commission (OCCC). The fintech industry must now decide whether to seek industry-specific clearance or cease operations due to the lack of consumer protections and potential accessibility to underage gamblers, as stated by OCCC executive director Matthew Schuler. This development poses a significant challenge to these companies, as traditional sportsbook operators only require state-specific licenses under federal regulatory oversight.
