Ohio is the latest state to include the recent Massachusetts prediction market ruling as supplemental authority in its own case, as state regulators increasingly point to the decision as judicial validation of their enforcement efforts against federally licensed prediction markets.
Massachusetts Superior Court Judge Christopher Barry-Smith issued a court order on Jan. 20 requiring Kalshi to halt its operations in Massachusetts pending legal cases. The preliminary injunction marked the first time a state successfully secured a court order forcing a prediction market operator to suspend sports-related contracts pending litigation.
Gaming lawyer Daniel Wallach shared on Jan. 23 that the Ohio Casino Control Commission (OCCC) filed this ruling in support of its opposition to Kalshi’s attempt to get a preliminary injunction.
The filing noted that the Massachusetts court “denied Kalshi’s motion to dismiss the state’s enforcement action.” Judge Barry-Smith also said that the operator didn’t adequately prove that the Commodity Exchange Act (CEA) preempts state laws.
A Battle Dating Back to April
The OCCC sent cease-and-desist letters in April to major prediction market platforms, including Kalshi, Robinhood, and Crypto.com. The correspondence claimed that these platforms were violating state laws by offering unlicensed betting on sports contracts.
Kalshi subsequently sued the OCCC and the Attorney General’s office in October. It claimed that despite months of back-and-forth talks, the state said federal law doesn’t preempt state law.
Kalshi has consistently argued that its CFTC license allows it to offer sports event contracts nationwide under the CEA. It maintains that it doesn’t need state-level gaming approval.
The operator seeks a preliminary injunction to allow it to continue operating in Ohio. In a November response, Ohio said that Kalshi has failed to demonstrate the “clear and manifest” purpose for the CEA to preempt lopreempting laws.
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Ohio Joins Growing State Pushback Against Kalshi Using Massachusetts Ruling
