Kalshi Challenges Ohio Regulator in Federal Court Over Prediction Platform Ban
Kalshi is taking a stand against what it perceives as overreach by the Ohio Casino Control Commission by filing a federal lawsuit. The company aims to secure a temporary injunction that would allow it to operate legally within Ohio starting October 20. Kalshi prediction ban
The lawsuit, filed with the US District Court for the Southern District of Ohio in Columbus, claims that the regulator has exceeded its authority in attempting to ban Kalshi’s prediction platform. Despite ongoing communications with the state in an effort to reach a resolution, the company argues that the regulator’s actions are unjustified.
In Ohio, legal sports betting is strictly regulated and limited to licensed agencies. The Ohio Casino Control Commission issued a cease-and-desist order against Kalshi in April, warning that engaging with the platform—despite its current unregulated status—could lead to penalties regardless of whether dealings occurred inside or outside the state. Ohio is not alone in this stance; Kalshi has faced similar directives from other states, including New Jersey, Illinois, and Nevada.
The company’s complaint underscores the potential harm such regulatory actions could cause, stating, “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.” Interestingly, in August, Kalshi expanded into pop culture territory by offering betting odds on the Kelce-Swift engagement, including predictions on when the wedding would take place.
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Kalshi’s legal efforts are focused on obtaining a federal injunction that would enable it to continue operating legally in Ohio starting October 20. This move is part of a broader pattern of legal challenges the platform faces. In August, the Ho-Chunk Nation filed a lawsuit against Kalshi, and in September, Massachusetts Attorney General Andrea Joy Campbell accused the company of “illegal and unsafe sports betting” practices.
Despite these obstacles, Kalshi continues to grow. Its latest funding round valued the company at $2 billion, and it has brought industry veterans like Sara Slane onto its team, signaling confidence in its future despite ongoing legal disputes. Kalshi prediction ban
