TLDR
- Kalshi filed a lawsuit against the Ohio Casino Control Commission on June 29.
- The suit aims to block a planned $5 million fine over sports contracts.
- Kalshi says the fine process denies its right to a jury trial.
- Ohio lawmakers are weighing a separate bill to regulate prediction markets.
- Google banned prediction market ads in Ohio starting June 2, 2026.
Kalshi has filed a new lawsuit against Ohio regulators. The company wants to stop a planned $5 million fine.
The case was filed on June 29 in the Franklin County Court of Common Pleas. It names the Ohio Casino Control Commission as the target.
The dispute goes back to April. That’s when the commission said Kalshi’s sports contracts count as unlicensed sports betting under state law.
Kalshi disagrees with that view. The company argues its contracts are financial products that fall under federal oversight, not state gaming rules.
Kalshi Seeks a Permanent Injunction
Kalshi is not just asking for a delay. The company wants the court to issue a permanent injunction against the fine.
Its lawyers argue that Ohio’s enforcement process denies Kalshi a jury trial. They say this goes against the state constitution.
The complaint asks the court to declare that any penalty under the relevant law must go through a jury process.
It also asks the court to rule that the law fails to give clear guidance for issuing civil penalties in the first place.
Kalshi’s Head of Communications, Elisabeth Diana, said earlier that the company would protect its interests to the fullest extent the law allows.
This is not the only legal fight Kalshi has faced this year over state sports betting rules. Similar disputes have come up in other states too.
Ohio Weighs New Rules for Prediction Markets
While the lawsuit plays out, Ohio lawmakers are working on a different approach to the same issue.
State Senator Bill DeMora introduced Senate Bill 430 back in April. It would require prediction market operators to get approval from the Ohio Casino Control Commission.
Under the bill, these companies would also need to pay taxes and follow the same rules as licensed sportsbooks in the state.
DeMora said the bill would give Ohio a way to oversee prediction markets if the U.S. Supreme Court eventually rules in their favor.
The bill has stalled since mid-May. It remains parked with the Senate Select Committee on Gaming with no further action taken.
Ad rules have already shifted in the meantime. Google confirmed it will stop running ads for prediction market contracts across Ohio.
That ban took effect on June 2, 2026. It covers Kalshi and other platforms offering similar contracts.
The new lawsuit is now the most recent step in the ongoing standoff between Kalshi and Ohio regulators over how prediction markets should be treated.
