Ohio Sends Cease & Desist Letters to 10 Prediction Platforms

Sports prediction markets may not be available for much longer in the Buckeye State. 

The Ohio Casino Control Commission has sent out ten cease-and-desist letters to prediction platforms offering sports markets in the state. It orders those operators to halt all sports contracts by Friday, October 16, until operators can secure licensing to officially join the Ohio sports betting market. Failure to comply will result in fines and additional legal actions.

Ohio’s move comes just days after the Sixth Circuit Court of Appeals ruled that the state, as well as Tennessee, can enforce its gambling laws against the controversial markets. While the case has already been appealed to the US Supreme Court, operators must now decide whether to continue operating in the market. 

The regulator sent letters to the following operators:

• Coinbase

• Gemini Titan

• Moomoo

• Novig

• Plus500

• Polymarket

• Prophet X

• Underdog

• Webull

Industry-leading Kalshi was not included on the list since it was involved in the case recently settled by the Sixth Circuit. 

At the end of each letter, the OCCC issued the following:

Because [the operator] is offering unlicensed sports gaming and bookmaking or facilitating bookmaking in Ohio, the Commission demands that [the operator] cease and desist from offering, participating in offering, or facilitating those who offer sports event contracts in Ohio. This includes soliciting or accepting orders for sports event contracts listed on DCMs from persons located in Ohio, as well as operating an FCM or DCM that offers sports event contracts to persons located in Ohio. [The operator] shall notify the Commission in writing no later than fourteen (14) days following the date of this letter that it has complied with this cease-and-desist notice.

Will the CFTC Step In?

While the Sixth Circuit ruling gives Ohio the right to regulate sports markets, its ability to enforce fines and bans may be limited until SCOTUS rules on the industry's future.

In the past, the Commodity Futures Trading Commission has ordered prediction platforms to ignore court orders. The regulator, fighting to maintain authority over sports markets, has issued “emergency” orders to preempt court rulings. 

While the regulator is attempting to help operators through this action, it has put them in an awkward spot. With the future of sports contracts very much in doubt, state regulation could be coming soon. If platforms follow the CFTC’s emergency orders, they risk fines and lawsuits if SCOTUS eliminates the regulator’s authority over the industry.

As of this writing, the CFTC has not issued any statements or taken any action in response to Ohio’s latest move.