The Sixth Circuit Court of Appeals has ruled that sports event contracts offered by prediction-market company Kalshi amount to gambling under Ohio law, handing a win to Gov. Mike DeWine and the Ohio Casino Control Commission in the fight over who regulates the fast-growing market.
The decision means Ohio’s gambling regulators can treat Kalshi’s sports contracts as wagers subject to the state’s Casino Control Law, rather than federally regulated financial products. DeWine and the commission had argued the contracts were unregulated sports betting operating outside Ohio’s gaming laws.
The ruling is a significant blow to prediction markets that have pushed into sports event contracts, bypassing state gaming commissions and their licensing and tax regimes. Kalshi had argued its contracts were financial derivatives under federal commodities law.
Ohio has been among the most aggressive states in challenging the platforms, and the Sixth Circuit’s ruling could shape similar fights playing out in other states. It was not immediately clear whether Kalshi would seek further appeal.
For Ohio bettors, the decision leaves the state’s licensed sportsbooks — and their consumer protections — as the legal home for sports wagering in Ohio.