Kalshi, an online event-based prediction platform, has filed a federal lawsuit against Ohio regulators and the state’s attorney general, alleging that attempts to halt its operations in the state amount to regulatory overreach.
The company, which allows users to exchange event contracts on real-world events, including sports, submitted a complaint on October 7 in the U.S. District Court for the Southern District of Ohio. The filing targets the Ohio Casino Control Commission and the office of Attorney General Dave Yost, claiming their actions have deterred other businesses from collaborating with the platform.
Kalshi’s model centers around “event contracts,” which the company says differ from traditional sports wagers. The lawsuit asserts that the commission’s actions, including a cease-and-desist letter issued earlier this year, have jeopardized Kalshi’s relationships with major sportsbooks and service providers.
According to court documents, the commission has warned other licensed operators that partnering with Kalshi, even outside of Ohio, could lead to disciplinary measures, including loss of licensure.
“If effectuated, the Casino Commission’s threat to these brokers would cut off Kalshi’s access to millions of users and key operators, and compound the extraordinary harm Kalshi would suffer as a result of the Casino Commission’s unlawful attempts at regulation,” the complaint states.
The company claims it has engaged in months of discussions with Ohio officials in an effort to clarify its legal standing and avoid conflict. However, regulators have maintained that Ohio law gives the state full authority to oversee sports betting activity within its borders, regardless of Kalshi’s federal regulatory arguments.
On October 6, the Ohio Casino Control Commission reiterated its stance in a letter addressed to Kalshi. “The Commission is unpersuaded that Ohio law is preempted by federal law as Kalshi contends. Consequently, to the extent Kalshi chooses to continue to offer unlicensed and unregulated sports gaming in the form of sporting event contracts within Ohio, Kalshi will be violating Ohio law,” wrote Matthew Schuler, the commission’s executive director.
Legal sports betting in Ohio is currently restricted to operators with a valid license issued by the state. Kalshi does not hold such a license, and its activities have been deemed unregulated by Ohio authorities
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