On October 7, 2025, Kalshi, a platform specializing in prediction market trading, filed a lawsuitagainst the Ohio Casino Control Commission (OCCC) and Ohio attorney general (AG), alleging that their regulatory actions overstep state authority. The complaint seeks to block enforcement of a cease-and-desist order that was issued by the OCCC in the spring, which accused Kalshi of “operating online sports gaming” and warned Ohio licensees that partnering with Kalshi could jeopardize their licensing status and integrity.
Kalshi’s platform allows users to trade contracts based on the outcomes of real-world events, including sports, which it argues are “economic instruments” regulated by the Commodity Futures Trading Commission (CFTC) at the federal level. The OCCC, however, expressed concerns that Kalshi’s event contracts resemble gambling rather than traditional financial trading, and asserted that state law gives Ohio the right to oversee and restrict such activities.
The core legal issue is whether Ohio regulators can suppress Kalshi’s operations by threatening legal consequences for licensed sportsbooks and vendors that collaborate with the platform, or whether federal law preempts state regulation in this context. Kalshi contends that its activities are legally sanctioned under federal law and that the OCCC’s actions infringe upon federal jurisdiction, causing harm to its business relationships and reputation.
Why It Matters
This dispute is emblematic of a broader national struggle between prediction-market platforms and state gaming regulators. This lawsuit is the latest in a series of lawsuits involving Kalshi in several states, including:
- Nevada: Kalshi sued the Nevada Gaming Control Board after receiving a cease-and-desist order. Kalshi secured a preliminary injunction in April 2025, but the case is still being litigated in district court.
- New Jersey: Kalshi obtained a preliminary injunction against New Jersey regulators, but the state immediately appealed. The case is now pending in the U.S. Court of Appeals for the Third Circuit.
- Maryland: Kalshi sued Maryland’s Lottery and Gaming Control Agency after a cease-and-desist order. Kalshi failed to obtain a preliminary injunction, and the case is ongoing. Kalshi has appealed the adverse ruling.
- Massachusetts: Massachusetts AG sued Kalshi in state court, and the case has been complicated by a separate federal lawsuit filed by Robinhood.
- Ohio: Kalshi has filed a federal lawsuit against Ohio officials after receiving a cease-and-desist order from the Ohio Casino Control Commission. Kalshi is seeking an injunction to prevent enforcement of state law, arguing its contracts are federally regulated. The case is pending in federal court.
- Tribal governments in California and Wisconsin have initiated lawsuits against Kalshi in federal court, seeking declaratory and injunctive relief regarding the legality of Kalshi’s contracts.
- Additionally, Illinois, Montana, Arizona, South Carolina, Kentucky, and Georgia have issued cease-and-desist letters or have lawsuits pending against Kalshi. The exact status varies, but most are in early litigation or pre-litigation phases.
With some courts ruling in favor of Kalshi and others against, the core issues raised in these cases ultimately may need to be decided by the U.S. Supreme Court.
