Kalshi Takes Ohio To Court For "Overstepping Authority"
Prediction market operator Kalshi has sued the Ohio Casino Control Commission (OCCC) as well as the state's Attorney General for "overstepping its authority". Months ago, the OCCC had sent Kalshi a cease-and-desist letter asking the company to stop offering sports event contracts in its jurisdiction.
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What Did Kalshi State In Its Lawsuit?
Kalshi's lawsuit, filed in the US District Court for the Southern District of Ohio, requests an injunction to stop the OCCC from removing the company's sports event contracts from the Ohio market.
Kalshi took issue with not only the OCCC's cease-and-desist letter from earlier in 2025, but also a recent communication sent by the OCCC to state-regulated sportsbooks to steer clear of prediction markets. The letter suggested that partnering with a prediction market operator could result in the loss of their sports betting license, even if the partnership took place outside of Ohio.
In Kalshi's complaint, the company indicates this action could cause "extraordinary harm" to its business.
 | 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 Kalshi complaint against OCCC |
Kalshi believes that because it is regulated by the Commodity Futures Trading Commission (CFTC) through its designated contract market license, it is not subject to state gambling laws. That's how, according to Kalshi, the OCCC has overstepped its authority.
The OCCC, clearly, does not agree with this belief, with OCCC Executive Director Matthew Schuler stating:
 | 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 Matthew Schuler, OCCC Executive Director |
According to the lawsuit, Kalshi and the OCCC have tried to find an agreement. After months of talks, no agreement could be found.
Not Kalshi's First Lawsuit
This is not the first time that Kalshi has sued a state's gaming commission for overstepping its authority. The prediction market operator has sued three other states, with different results so far.
- Nevada: Kalshi sued the Nevada Gaming Commission for its cease-and-desist letter. In that case, Kalshi was granted a preliminary injunction to continue providing its sports event contracts in the state, while the plaintiff waited for a ruling on a full injunction. The latest development in the case is that the Nevada Resort Association was allowed to intervene (or join) the OCCC side in the lawsuit.
- New Jersey: Kalshi sued the New Jersey Division of Gaming Enforcement (DGE) for the same reasons as Nevada. Again, the company was awarded a preliminary injunction. Since then, 60+ tribes, 34 Attorney Generals, and the Casino Association of New Jersey filed amicus briefs in support of the DGE.
- Maryland: Kalshi sued the Maryland Lottery and Gaming Control Agency for the same reasons it sued Nevada and New Jersey. However, Judge Adam Abelson did not grant Kalshi an injunction for failing to "show a likelihood of success on the merit of its claim." Kalshi is appealing the decision.
- Massachusetts: In the Bay State, AG Andrea Joy Campbell flipped the script, suing Kalshi for operating an unlicensed sportsbook. Campbell's lawsuit has the aim of forcing Kalshi to obtain a sports betting license.
