TLDR
- Ohio Sen. Bill DeMora filed SB 430 to regulate prediction markets offering sports contracts under the state’s existing sports betting laws
- The bill would require prediction market operators to obtain state licenses and pay the same taxes as sportsbooks
- Federal courts have issued conflicting rulings on whether states can regulate prediction markets like Kalshi
- The Ohio Casino Control Commission recently moved to fine Kalshi $5 million for taking unlicensed sports bets
- Several other gambling-related bills are active in Ohio, including one that would ban online sports betting entirely
An Ohio state senator introduced a bill Monday that would force prediction market operators to follow the same rules as licensed sportsbooks if they offer contracts on sporting events in the state.
Sen. Bill DeMora, a Democrat from Columbus, filed Senate Bill 430 as a backup plan. If the U.S. Supreme Court sides with prediction markets in ongoing legal battles, his bill would still give Ohio a way to tax and regulate them.
“If somehow we lose the court cases, and they say, well, they can do this, then they ought to be taxed for it,” DeMora told Gambling Insider.
DeMora serves as the lead Democrat on the Ohio Senate Select Committee on Gaming. He called Kalshi, the largest U.S. prediction market operator, “a sham” and said its sports contracts are no different from sports bets.
“They need to be regulated like everybody else,” he said. “They need to pay the same amount of taxes everybody else is paying.”
Federal Courts Split on Prediction Market Regulation
Ohio is one of several states that have sued Kalshi for allegedly violating state gambling laws. Kalshi and its competitors argue that only the U.S. Commodity Futures Trading Commission has authority over their business.
The CFTC itself has filed suits against certain states to prevent them from blocking prediction market activity.
Two weeks ago, the Ohio Casino Control Commission announced plans to issue a $5 million fine against the New York-based operator for taking sports bets without a license.
On Friday, a three-judge panel from the U.S. Sixth Circuit Court of Appeals denied Kalshi a preliminary injunction against Ohio officials. However, the court also fast-tracked the appeal, with Kalshi’s brief due by May 5 and Ohio’s response due by June 4.
On Monday, the same court approved Kalshi’s request to hear Tennessee’s appeal of a lower court ruling that had blocked the state from taking action against the exchange.
Earlier this month, a panel from the U.S. Third Circuit Court of Appeals sided with Kalshi in a split decision against New Jersey officials.
These conflicting rulings at the federal level make it more likely the question will eventually reach the Supreme Court.
Other Gambling Bills in Play in Ohio
DeMora said he believes Congress is too divided to act on prediction markets, especially with a major election approaching. He encouraged other states to take their own steps.
There are key differences between sportsbooks and prediction markets. Sportsbooks take bets directly, while prediction markets match two people on opposite sides of a contract. Prediction markets allow users as young as 18, while Ohio requires sports bettors to be 21.
Ohio’s licensed sportsbooks reported over $1 billion in revenue last year. The state taxes that revenue at 20%, bringing in nearly $210 million in 2025, with most of the money going to education.
DeMora’s bill is one of several gambling proposals in the Ohio Legislature. A group of Republican House members recently unveiled the “Save Ohio Sports Act,” which would ban online sports betting and limit wagering to the state’s four casinos.
Sen. Louis Blessing, a Republican, has also filed a bill that would add a 2% tax on sportsbooks’ total handle on top of the existing 20% revenue tax.
The Ohio Legislature has sessions scheduled for mid-May and weekly in June, with additional sessions likely after the November election. Kalshi did not immediately respond to a request for comment on SB 430.
