Ohio lawmakers are taking a run at prediction markets in hopes of making the platforms secure sports betting licenses.
Sen. Bill DeMora introduced this week Senate Bill 430, which aims to require prediction markets to secure Ohio sports betting licenses to offer sports event contracts. It would also require the prediction market platforms to pay the related 20% tax rate.
The Ohio Casino Control commission is in the midst of a lawsuit with Kalshi over sports event contracts. The OCCC believes the platform is offering unlicensed sports betting.
This is not the first time the senator has chimed in on sports betting this year. DeMora previously said he is “morally opposed” to proposed sports betting changes from the House that would ban parlays and prop bets.
Ohio battles prediction markets
Last year, the OCCC sent a cease-and-desist order to Kalshi, demanding it stop offering sports event contracts. Kalshi then sued the OCC and Ohio Atty. Gen. Dave Yost in the U.S. District Court for the Southern District of Ohio.
Last month, the court denied Kalshi’s request for a preliminary injunction to stop the OCCC from enforcing its sports betting regulations. The OCCC has since issued a $5 million fine to Kalshi for offering unlicensed sports betting in Ohio.
There are multiple ongoing lawsuits involving Kalshi and state regulators across the country, including Nevada and California.
There are bills moving through state legislatures across the country that look to ban or regulate prediction markets. However, most of those bills are largely performative, at least until the future of prediction markets is likely dictated by the Supreme Court.
Federal action from Ohio proposed
U.S. Sen. Bernie Moreno (R-OH) introduced last week a resolution in Congress to prevent US Senators from trading on prediction markets.
“Any Senator who comes to Washington, D.C., to cash in, play the markets, or treat public office like a side hustle is a betrayal to the people they swore to serve,” Moreno said in a statement. “If you’re here to enrich yourself instead of fight for the American people, this (is) a clear abuse of power and you have no business holding public office.”
He called for it to be passed unanimously.
US lawmakers have also questioned prediction markets and their legality.
