Ohio Governor DeWine Brands Kalshi Prediction Markets as Illegal Gambling Following Sixth Circuit Ruling
Ohio Gov. Mike DeWine labeled prediction markets as illegal gambling and confirmed enforcement of state laws against Kalshi after a US Sixth Circuit Court of Appeals ruling. Contracts are available at 18 versus 21 for sports betting, which DeWine called an attempt to evade rules and taxes. Kalshi is expected to fight legally citing federal regulation.
SCCG Take — The ruling arms Ohio with enforcement tools but highlights unresolved federal-state tensions that could trigger protracted litigation for operators. Prediction platforms must weigh market exits against sustained legal costs.
Ohio Governor Mike DeWine has sharpened his criticism of prediction markets, equating them directly to illegal gambling and confirming the state will enforce its gaming laws against operators including Kalshi.
The US Sixth Circuit Court of Appeals ruling now permits Ohio to apply state regulations to sports event contracts. These contracts are available at age 18, in contrast to sports wagering which sets the threshold at 21. Regulators view the underlying dynamic as equivalent despite the trading label.
Governor DeWine’s Direct Critique
DeWine stated: “These so-called prediction markets—which are really gambling, nothing more than that—they’re just trying to get around the law, don’t want to play by the same rules everybody else does, and they don’t want to be regulated by the state. And we think that’s wrong.”
He added: “If it’s a pig, it’s a pig. If we call that pig a sheep, it’s still not a sheep. It’s a pig. These guys are pigs. They are gambling, and they don’t want to pay anything. They just want to have a free ride. So we will certainly enforce the law.”
DeWine maintained that participants engage in gambling regardless of the terminology used. As reported by Gambling News, the position leaves little room for reinterpretation under Ohio rules.
Kalshi’s Enforcement Crossroads in Ohio
State authorities plan to proceed with local gaming law enforcement, requiring Kalshi to either suspend event contracts or face further legal measures for noncompliance. The company has signaled it will not yield and instead exhaust all legal avenues, citing its federally regulated products as a core defense.
This creates immediate operational uncertainty for the platform in the state. The counterargument from Kalshi underscores a clear jurisdictional clash that courts have yet to settle definitively. How federal approvals interact with aggressive state action will determine whether such markets can sustain a foothold without uniform national standards.
Reporting: GamblingNews
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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