News: Ohio Becomes Latest State To Send Cease-And-Desist Letters To Kalshi, Robinhood
Crypto.com also told to stop offering sports betting via prediction markets
Ohio’s gaming commission sent cease-and-desist orders to a trio of platforms —Kalshi, Robinhood and Crypto.com — for allegedly offering illegal sports betting, the Closing Line has learned.
TCL has seen a press release announcing the C&Ds. The release was not yet on the Ohio Casino Control Commission website but was sent via email. All three operators offer the equivalent of sports betting via prediction markets.
What we know:
The OCCC said it believes the three operators are not operating legally in the state for the sports event markets.
Nevada and New Jersey have issued similar cease-and-desists, but this is the first time Crypto.com was also named.
The three platforms have until April 14 to come into compliance with the order.
A Kalshi spokesperson offered the following statement:
The threatened actions in Ohio seek to undermine not just Kalshi’s contracts, but the authority granted by Congress to the Commodity Futures Trading Commission, which has safely and effectively governed commodities markets for decades.
Prediction markets are a critical innovation of the 21st century, and like all innovations, they are initially misunderstood. We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law.
Here’s how the press release reads:
COLUMBUS, OHIO – The Ohio Casino Control Commission (OCCC) today issued cease and desist notices to Kalshi, Robinhood, and Crypto.com, three companies offering event contracts on sporting events to Ohioans. The Commission determined the event contracts offered by the companies on sporting events meet the definition of sports gaming under the law, which requires licensure to be legally offered in Ohio.
The Commodity Futures Trading Commission (CFTC) has regulated event futures contracts for some time. However, these companies began only recently offering futures contracts on sporting events.
“Purchasing a contract based on which team a person thinks will win a sporting event is no different than placing a bet through a traditional sportsbook,” said Ohio Casino Control Commission Executive Director Matthew Schuler. “The only difference is that these event contracts do not have the consumer protections required under Ohio law and are accessible to Ohioans under 21 years of age. The Commission must take action to fulfill its statutory responsibilities and ensure the integrity of sports gaming in Ohio.”
The cease-and-desist notices demand that the three companies cease offering, participating in offering, or facilitating those who offer sports event contracts in the State. Each company must notify the OCCC in writing of compliance with the notice no later than Monday, April 14, 2025.