The Ohio Casino Control Commission has fined online prediction market Kalshi millions of dollars for illegal operation in the state.
The $5 million fine was announced April 14 by the commission against KalshiEX LLC for operating unlicensed sports gaming in Ohio.
In the announcement, the commission cited Kalshi’s refusal to stop offering sports gaming in Ohio as a need to issue the fine to uphold Ohio law. Since the matter is ongoing, the commission said it would not comment further.
“The Commission takes its regulatory responsibilities to ensure compliance with the law and the integrity of sports gaming in Ohio seriously,” read a commission statement.
“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,” a spokesperson for Kalsi said in an email to The Dispatch.
Kalshi was founded in 2018 by two students at the Massachusetts Institute of Technology, according to the company’s website. The platform allows people to trade on event outcomes of all kinds, including sports, elections and current events.
Sports gambling was legalized in Ohio in January 2023. Under the state’s sports gambling law, the Casino Control Commission licenses gaming companies. The commission said in its notice that Kalshi has been operating in Ohio without a license since January 2025.
Kalshi allows its users to enter into what it calls “sports event contracts,” but the commission says in its notice that those wagers are substantially the same as what licensed sports gambling platforms offer in Ohio. Users wager on a yes-or-no outcome and win when they are correct.
Kalshi said in a court document that more than 35,000 Ohio consumers use its platform, according to the commission.
“By continuing to operate without seeking licensure, Kalshi has effectively thwarted the Commission from investigating Kalshi’s (and its key employees’) suitability,” the notice says. “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.”
In March, a federal judge in Ohio sided with state regulators after Kalshi sued the Casino Control Commission to try to stop it from regulating its operations.
“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,” Attorney General Dave Yost said in a social media post after the commission issued its fine. “I wouldn’t bet on how long Kalshi will be operating in Ohio.”
This story was updated with additional information.
Dispatch investigative reporter Max Filby can be reached by email at mfilby@dispatch.com. Find him on X at the handle @MaxFilby or on Facebook at @ReporterMaxFilby.
This article originally appeared on The Columbus Dispatch: Ohio Casino Control Commission fines Kalshi prediction market
Reporting by Max Filby, Columbus Dispatch / The Columbus Dispatch
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