Ohio Regulators Issue Cease and Desist Orders to Prediction Markets

Ohio gambling regulators have ordered ten prediction market operators, including Polymarket and Robinhood, to halt sports-related event contracts for Ohio residents. These companies must either comply with state sports betting regulations or cease operations within 14 days, facing potential fines, lawsuits, or criminal charges.

What Happened

Ohio gambling regulators have issued cease and desist letters to ten prediction market operators, demanding they either adhere to state sports betting regulations or discontinue offering sports-related event contracts to Ohio residents, according to cleveland.com. This action follows a federal appeals court victory for Ohio regulators against Kalshi (cleveland.com).

The letters, sent to companies such as Polymarket and Robinhood, specify a 14-day compliance period. Failure to comply could result in financial penalties, legal action, or criminal prosecution (cleveland.com). This move by the Ohio Casino Control Commission (OCCC) targets operators for allowing individuals to place funds on sporting events through prediction markets (Ohio OCCC Targets 10 Prediction Market Operators | Betting News).

Key Details

• Ten prediction market operators received cease and desist letters from Ohio regulators (Ohio Regulator Sends C&Ds to 10 Prediction Platforms).
• Operators cited include Polymarket and Robinhood (cleveland.com, Ohio Tells Polymarket, Robinhood, Coinbase to Halt Sports Contracts).
• These companies are required to comply with Ohio’s sports betting rules or cease offering sports-related event contracts to state residents within 14 days (cleveland.com).
• Non-compliance could lead to fines, lawsuits, or criminal charges (cleveland.com).

Why It Matters

This regulatory enforcement in Ohio represents an escalation in the ongoing nationwide debate concerning the classification of prediction market sports event contracts. The core issue is whether these contracts are considered federally regulated financial “swaps” or fall under state-regulated gambling laws (cleveland.com). Governor DeWine has indicated the state’s intent to enforce gambling laws for online sports betting applications (Gov. DeWine: State will begin enforcing gambling laws for online sports betting apps – Ohio News). The Ohio Casino Control Commission (OCCC) is actively working to ensure prediction market operators adhere to state regulations governing sports wagering (Ohio OCCC Targets 10 Prediction Market Operators | Betting News).

Originally reported by cleveland.com·Published 9 Oct 2026, 12:00