Ohio government fines the Kalshi prediction market $5 million over sports contracts

The Ohio Casino Control Commission has fined online prediction market Kalshi $5 million for operating illegally in the Buckeye State.

The commission against KalshiEX LLC for operating unlicensed sports gaming in Ohio announced the $5 million fine on April 14, citing Kalshi’s refusal to stop offering sports gaming in the state as necessitating the fine to uphold Ohio law, according to The Columbus Dispatch.

“The Commission takes its regulatory responsibilities to ensure compliance with the law and the integrity of sports gaming in Ohio seriously,” the commission wrote in the statement, according to the news source.

A spokesperson for Kalshi expressed the company’s disappointment in the recent decision in an email to The Dispatch.

“We are disappointed in this latest development, especially considering our ongoing litigation with Ohio and recent rulings in other courts confirming our right to operate as a federally licensed exchange. We are reviewing the Gaming Commission’s letter,” the spokesperson said.

According to Kalshi’s website, the company was founded in 2018 by two students at the Massachusetts Institute of Technology who wanted to enable people to trade on event outcomes of all kinds, including sports, elections, and current events, with people wagering on a yes-or-no outcome and winning when they are correct.

The Casino Control Commission, which licenses gaming companies under the state’s sports gambling law that was signed by Republican Gov. Mike DeWine in January 2023, said in its notice that Kalshi has been operating in Ohio without a license since January 2025, according to The Dispatch.

The news source reported that Kalshi allows its users to enter into so-called “sports event contracts,” but the commission said in its notice that those wagers are essentially the same as those offered by licensed Ohio sports gambling platforms.

In a court document, Kalshi said that more than 35,000 Ohio consumers use its platform, according to The Dispatch.

“By continuing to operate without seeking licensure, Kalshi has effectively thwarted the Commission from investigating Kalshi’s (and its key employees’) 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.”

Ohio Attorney General Dave Yost responded to the recent news on X, celebrating the decision.

“Ohio put Kalshi on notice today that its ‘prediction markets’ are unlawful gaming and proposed a $5 million fine. A federal court already agreed with our reading of the law,” Yost posted on X after the commission issued its fine. “I wouldn’t bet on how long Kalshi will be operating in Ohio.”

Ohio put Kalshi on notice today that its “prediction markets” are unlawful gaming and proposed a $5 million fine. A federal court already agreed with our reading of the law.

I wouldn’t bet on how long Kalshi will be operating in Ohio. pic.twitter.com/Gcw3GOTTlk

— Dave Yost (@DaveYostOH) April 14, 2026

The Dispatch reported that a federal judge in Ohio sided with state regulators in March after Kalshi sued the commission to stop it from regulating Kalshi’s operations.

Yost also celebrated the March decision in a social media post at the time.

“Kalshi argued the federal Commodity Exchange Act preempts enforcement of Ohio law. Nope,” he wrote after the ruling. “These ‘prediction markets’ have exploded and look an awful lot like gambling. Big win for Ohio!”