Robinhood, Polymarket among 10 operators sent cease-and-desist orders in Ohio

The Ohio Casino Control Commission has issued 10 cease-and-desist orders to prediction market operators currently active in the state, including Robinhood, Coinbase, Novig, Underdog and Polymarket. 

Kalshi remains involved in litigation with the Ohio regulator, having recently suffered a loss after the US Court of Appeals for the Sixth Circuit ruled against its disputes with policymakers in Ohio and Tennessee on September 28. 

The Sixth Circuit found that the operator failed to establish its sports event contracts fall exclusively under federal regulation and the oversight of the Commodity Futures Exchange Commission (CFTC). 

Each of the operators served with cease-and-desist orders on October 6 were given 14 days to respond and shut down their respective prediction market operations in Ohio. 

“The Ohio Casino Control Commission has jurisdiction over all persons conducting or participating in the conduct of sports gaming in the State of Ohio. The Commission is hereby putting you on notice that by offering ‘event contracts’ on sporting events to persons located in the State of Ohio, without a sports gaming license, (the operator is) violating Ohio law,” the order stated. 

“This includes soliciting or accepting orders for sports event contracts listed on DCMs from persons located in Ohio, as well as operating an FCM or DCM that offers sports event contracts to persons located in Ohio.”

On September 16, the Ohio Casino Control Commission became the third state to withdraw its membership from the National Council on Problem Gambling (NCPG), citing the organization’s partnership with Kalshi which was originally formed in May.

The regulator’s Interim Executive Director Andromeda Morrison stated the Commission cannot be associated with organizations “that are affiliated with companies engaged in illegal gambling in Ohio.”

Prior to Ohio’s exit, the Michigan Gaming Control Board and Nevada Council on Problem Gambling also chose to depart the NCPG, which received a $2m investment from Kalshi and named the operator as its first-ever financial services & trading member.