Ohio Gains Compliance from Robinhood, Coinbase and Three Other Prediction Market Operators

Four prediction market firms have agreed to stop offering sports event contracts to Ohio customers after the state issued cease-and-desist orders. Robinhood, Coinbase, Gemini and Moomoo Financial join Plus500US, which confirmed compliance on October 21. Coinbase will halt offerings by November 13. The Ohio Casino Control Commission (OCCC) targeted 10 operators on October 2 and set an October 16 deadline for responses.

Five of the 10 have now complied. This represents half the group initially contacted. The enforcement follows the U.S. Court of Appeals for the Sixth Circuit's September ruling that sports-event contracts are not swaps under federal commodities law and that federal law does not preempt state gambling statutes.

Responses from the Targeted Operators

Underdog and Polymarket filed lawsuits against the state. Polymarket argues that Ohio's physical-presence and in-state server requirements for sports betting licenses unlawfully discriminate against interstate commerce. Novig, ProphetX and Webull remain in discussions with the OCCC. The commission has warned that ignoring its orders could trigger administrative, civil or criminal action along with financial penalties tied to revenue from Ohio customers.

Risks Facing Licensed Operators and Suppliers

The OCCC also sent an October 20 letter to licensed gaming operators, suppliers and other licensees. It identified services including market making, liquidity provision, integrity monitoring, data security and technology support. Assisting unlicensed prediction platforms with sports event contracts could jeopardize those licenses. Confirmation that support had stopped was required by October 30. According to reporting by Gambling Insider, several licensees met the deadline while the commission plans follow-up with the rest.

The pattern of swift compliance by half the recipients, paired with active litigation from two others, indicates that state regulators hold immediate leverage even as constitutional questions move through the courts. Prediction market firms must now calibrate their exposure to similar actions in other jurisdictions that may follow Ohio's lead.