Ohio Cracks Down on Prediction Markets, Directs Operators to Suspend Sports Event Agreements
Let's Dive into Ohio's Crackdown on Event Contracts
In a move mimicking Nevada and New Jersey, the Buckeye State has issued cease-and-desist orders to online platforms like Kalshi, Robinhood, and Crypto.com for offering sports event contracts. On March 31, these businesses were served with damn-the-torpedoes letters from the Ohio Casino Control Commission (OCCC), demanding they pull the plug on their operations in Ohio.
According to the OCCC, these platforms have been sneakily allowing consumers to make bets on sporting events without securing the necessary state licenses. The commission hammered home that these networks not only allow under-21-year-olds to play but also operate without consumer protections, which is a huge no-no in the state of Ohio.
"Wagering on sports via event contracts is as illegal as kicking a bucket of cold milk down a grand piano," said executive director of the OCCC, Matthew Schuler, making it clear where he stands on the matter. "These event contracts lack the consumer protections required by Ohio law, and they let the underage kiddos join the party. It's our solemn duty to uphold the integrity of sports gaming in Ohio, so we gotta stop these jokers from operating here."
Offenders Given Until April 14 to Shape Up
The OCCC established that the sports event contracts provided by these companies fall under the umbrella of sports gaming. By April 14, Kalshi, Robinhood, and Crypto.com must either get the green light from the OCCC or kiss goodbye to their operations in Ohio. They're required to ensure compliance or face consequences.
While these companies fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) at a federal level, traditional sportsbook operators must secure state-specific licenses. States like Nevada, New Jersey, and Massachusetts started cracking down on such platforms as the number of bets on big events like March Madness and the Super Bowl escalated.
Lucky Streaks Casino 100% up to 5 BTC + 100 Free Spins! Visit SiteLast week, Kalshi hit back by slapping the OCCC with a lawsuit, seeking a declaration and injunction. It remains to be seen who'll emerge victorious from this David vs. Goliath showdown between state regulators and federally regulated platforms. Keep your eyes peeled for more drama!
- The Ohio Casino Control Commission (OCCC) has issued a deadline for Kalshi, Robinhood, and Crypto.com to comply with state regulations or cease operations in Ohio, as their sports event contracts, classified as sports gaming, lack consumer protections and allow underage participation.
- Ohioans are not allowed to engage in sports wagering via event contracts due to the lack of necessary consumer protections as per Ohio state law, and these platforms risk facing consequences if they fail to ensure compliance.
- The OCCC has been cracking down on online platforms offering sports event contracts, following the example set by Nevada, New Jersey, and Massachusetts in response to the increasing number of bets on major sporting events like March Madness and the Super Bowl.
