The Ohio Casino Control Commission has issued a letter of intent and proposed a $5m fine against Kalshi, believing the operator has been conducting business in the state without a license since January 2025.
"By continuing to operate without seeking licensure, Kalshi has effectively thwarted the Commission from investigating Kalshi's suitability," the notice said.
"As a result, the Commission also lacks awareness of whether, or to what extent, Kalshi adheres to the various safeguards and guardrails that Ohio law requires."
During March 2026, a federal judge in Ohio had previously ruled in favor of state regulators when Kalshi filed a lawsuit against the Ohio Casino Control Commission for attempting to prohibit its operations.
Kalshi argued its sports-event contracts should be treated as federally regulated swaps under the Commodity Exchange Act, a category typically associated with financial derivatives used in investment markets.
US District Judge Sarah Morrison rejected the argument, however, concluding that the contracts tied to sporting outcomes do not meet the legal definition of a financial swap.
According to Morrison, swaps are generally understood as transactions involving financial instruments tied to factors that directly influence commodity prices or economic conditions.
“Currency exchange rates, the weather and energy costs all do that: the number of points scored in the Huskies-Bobcats game does not,” Morrison said.
Attorney General Dave Yost believes the state has “put Kalshi on notice” with the proposal of a monetary penalty and “wouldn’t bet” on how long the operator will be conducting business in Ohio.
Within the notice, the Commission also commented on how wagers offered by Kalshi are “substantially the same” as those provided by licensed sports gambling operators in Ohio. Kalshi stated in a court document that over 35,000 Ohio consumers currently use its platform.
The operator was granted a reprieve in Arizona following intervention from the Commodity Futures Trading Commission, resulting in a temporary suspension of Kalshi’s case against state regulators.
Three Ohio Republican lawmakers introduced plans for new restrictions on the state’s sports betting market on April 9, proposing a series of consumer protection and sports integrity measures
