Ohio Fires Warning Shot Over Prediction Markets
The Ohio Casino Control Commission (OCCC) isn't going to mess around when it comes to sportsbooks offering prediction market-type products. This week, the Ohio commission warned licensees that venturing into the prediction market space could result in the end of their license agreement.
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Ohio Sports Betting License On The Line
In its letter to sports gaming license holders, the OCCC didn't hold back, making it clear that any license holder who offers event contracts by either becoming a designated contract market or acquiring a company that is one would result in an evaluation of its "continued suitability [as] a sports gaming licensee".
In layman's terms, Ohio has no problem ending a sports gaming license if a firm offers prediction market products on its platform.
Even if a company geofenced its prediction market products, blocking Ohio consumers, that wouldn't be enough for the OCCC to look the other way.
 | Furthermore, even if a sports-gaming licensee in Ohio geofences or takes other actions to restrict Ohioans from accessing sporting event contracts in the prediction markets, that are otherwise offered to their patrons outside Ohio, this may not alleviate the suitability concern if the licensee associates, coordinates, or partners with a company offering or facilitating the offering of these sporting event contracts in Ohio. |
The OCCC defines prediction markets as gambling: "Plainly stated, companies that are offering sporting event contracts are operating online sports gaming". That's a direct shot at companies like Kalshi, Robinhood, and Crypto.com, which define their products as "investing".
Why Is Ohio Sending This Letter?
The OCCC is taking this unprecedented proactive step as the two largest sportsbooks in America take steps towards entering the prediction market space.
Earlier this week, FanDuel announced a partnership with CME Group to offer financial event contracts later this year. Though the announcement clearly states that sports event contracts won't be offered, it's easy to see a path towards the controversial products.
DraftKings, meanwhile, has registered with the National Futures Association. Registration is the first step towards becoming a designated contract market for prediction markets. DraftKings is also rumored to be acquiring Railbird Exchange, a federally regulated event contract trading platform.
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21+ and present in OH.
How Big Is Ohio's Sports Betting Market?
Ohio is the 11th-largest sports betting market in the US, per reported handle. In 2025, sportsbooks' handle was $3.5 billion, generating $455 million in revenues in the Buckeye State.
Through the first half of 2025, FanDuel has generated $197.3 million in revenue while DraftKings has taken in $141.9 million. Clearly, Ohio is important to both companies. They won't needlessly jeopardize their sports gaming license.
