Ohio Regulator Faces Second Lawsuit as Kalshi Fights $5M Sanction

Kalshi has opened a new front in its battle with Ohio regulators, filing a lawsuit in state court to stop a planned $5 million fine.

The case, first reported by gaming attorney Daniel Wallach, was lodged on June 29 against the Ohio Casino Control Commission (OCCC), which earlier this year announced its intention to penalize the company for what it described as unlicensed sports betting.

The regulator first revealed in April that it considered Kalshi’s sports contracts to fall under state gaming law, a position the company disputes.

Kalshi pushing for permanent injunction

Kalshi has taken its fight with Ohio a step further, asking the Franklin County Court of Common Pleas to block the regulator’s $5 million penalty permanently.

The company’s Head of Communications, Elisabeth Diana, had already promised that Kalshi would “protect our interests to the maximum extent provided by the law.” That pledge now appears in the new complaint, where Kalshi argues that Ohio’s enforcement plan violates its constitutional rights.

In the filing, Kalshi’s lawyers claim the Ohio Casino Control Commission is denying the firm its right to a civil jury trial under the state constitution. They insist that the regulator’s actions justify a permanent injunction and a formal declaration that Ohio’s approach breaches state law.

The complaint states: “Kalshi is entitled to a permanent injunction enjoining the Commission from enforcing R.C. Chapter 3775 against Kalshi, and a declaration that (1) the enforcement of a statutory penalty under R.C. Chapter 3775 must occur in a forum that affords a jury, and (2) that R.C. Chapter 3775 fails to provide an intelligible principle for imposing a statutory penalty, such that R.C. Chapter 3775 may not be utilized as a basis for imposing civil penalties upon Kalshi.”

Ohio wants to regulate and tax prediction markets

While Kalshi continues to fight in the courts that its operations are under federal oversight s, Ohio is already making plans to bring prediction markets under its sports betting framework.

In April, State Senator Bill DeMora introduced Senate Bill 430, a proposal that would require prediction market operators offering contracts on Ohio sporting events to obtain approval from the Ohio Casino Control Commission. The bill would also mandate that these platforms pay taxes and follow the same rules as licensed sportsbooks.

DeMora explained back in April that if the U.S. Supreme Court sides with prediction markets instead of states trying to block them, his bill would give Ohio a structure to monitor their activities.

So far, the legislation has stalled. Since being referred to the Senate Select Committee on Gaming in mid‑May, it has gained no traction.

At the same time, advertising restrictions have tightened. Google confirmed that prediction market contracts and related products will no longer be promoted through Google Ads in Ohio, with the ban taking effect on June 2, 2026.

Ohio Regulator Faces Second Lawsuit as Kalshi Fights $5M Sanction

Kalshi pushing for permanent injunction

Ohio wants to regulate and tax prediction markets

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