Ohio Latest State to Denouce Prediction Markets

A letter from the Ohio Casino Control Commission says that launching sports event contracts or working with prediction markets like Kalshi could put a sportsbook's license in jeopardy.

FanDuel, which holds a license in the Buckeye State, recently announced it will be entering the highly lucrative prediction market. 

Joe Brennan, Jr, who was instrumental in helping to draft and pass New Jersey's constitutional amendment to permit legal sports betting, epxressed his concern over what he sees as Ohio regulators overreach.  Brennan, Jr. was previously a partner in Ohio-licensed Prime Sports. 

"I have a license in OH, so I don't say this lightly, but continuing to punish sportsbooks that play by the rules only empowers those that don't Ohio is a great market, but PMs can freely access it & 49 other great markets."

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The letter, dated Monday and obtained by The Closing Line, makes it clear the OCCC would not tolerate offering sports betting via a prediction market without a proper license and vetting. From the letter:

    “If an Ohio sports gaming licensee chooses to offer sporting event contracts in Ohio through their own DCM or FCM (or those under common ownership or operated by a related entity) … the Commission will consider these choices as it evaluates the continued suitability of a sports gaming licensee, including key employee licensees, to maintain a license.”

The letter goes on to say that geofencing such an offering and/or restricting its use by Ohio residents while offering it in the rest of the country “may not alleviate the suitability concern” for an operator depending on the logistics. And further:

    Any business relationship between an Ohio sports gaming licensee (including its related entities or those under common ownership) with any entit(ies) offering or facilitating the offering of unlicensed sports gaming in Ohio calls into question the reputation of the licensee and the integrity of sports gaming in Ohio.

The letter was signed by Matthew Schuler, the OCCC’s executive director.

Additionally, the letter suggests it will be difficult for any existing regulated gambling site to partner with Kalshi. 

CME Group, the world's leading derivatives marketplace, and FanDuel, one of the leading regulated US sports betting sites,, on Wednesday announced a groundbreaking alliance that will launch new products and expand access to financial markets for millions of FanDuel customers in the U.S.

This innovative partnership will build on CME Group’s long track record of developing regulated, transparent markets, and FanDuel’s vast customer reach. Together, the companies will develop new fully funded, event-based contracts with defined risk. Customers will be able to express their views multiple times a day on a wide range of markets with simple “yes” or “no” positions for as little as $1.

- Gilbert Horowitz, Gambling911.com