Kalshi Sues Ohio in Effort to Remain Open in the State
Kalshi has filed a lawsuit against the Ohio Casino Control Commission and the state Attorney General’s office, alleging that Ohio has exceeded its authority by blocking its operations.
LISTEN TO THIS ARTICLE:The complaint, filed on October 7 in the US District Court for the Southern District of Ohio, claims that the state's actions have intimidated potential business partners and caused commercial harm. Kalshi offers users the ability to trade on real-world events through what it calls event contracts, including markets tied to sports outcomes. The company argues that these offerings are permitted under federal law overseen by the Commodity Futures Trading Commission (CFTC).
According to court filings, Kalshi has been in contact with Ohio regulators for several months in an attempt to resolve concerns over its operations. The company asserts that rather than working toward a resolution, Ohio authorities have taken enforcement measures and warned licensed sportsbooks that collaborating with Kalshi could violate state gambling laws. Ohio’s Casino Control Commission maintains that all sports wagering activity within the state must be conducted through operators that hold a valid Ohio sports gaming license.
The lawsuit states that the Casino Control Commission sent Kalshi a cease-and-desist letter in early 2025, directing the company to halt any sports-related markets accessible to Ohio residents. The filing further alleges that regulators warned other licensed sportsbooks that maintaining relationships with Kalshi, even for activities conducted outside state borders, could jeopardize their Ohio gaming licenses. Kalshi contends that these threats effectively cut it off from millions of potential users and key business partners, causing significant harm to its operations.
In the court complaint, Kalshi argues that the state’s actions conflict with federal oversight of futures and event-based contracts under the CFTC. The company asserts that federal law preempts Ohio’s attempts to regulate its markets as gambling. Kalshi’s filing asks the court to issue an injunction preventing the state from enforcing its restrictions, with the request seeking relief before October 20 to allow the platform to continue operations while the case proceeds.
More Business News
Ohio Not Backing Down
The state has pushed back, saying its authority over sports wagering within Ohio remains intact. Correspondence from Casino Control Commission Executive Director Matthew Schuler on October 6 stated that the agency does not agree with Kalshi’s interpretation of federal preemption.
Schuler wrote that if the company continues offering what the commission views as unlicensed sports gaming within Ohio, it will be considered in violation of state law. This letter, submitted as an exhibit in the court filing, forms a central part of Kalshi’s claim that the state has unlawfully interfered with its federally regulated business.
Ohio Attorney General Dave Yost’s office has also taken an active role in national efforts to limit Kalshi’s activities. In June, Yost joined more than thirty other state attorneys general in a legal brief supporting state authority to regulate online sports betting. The filing, submitted in a separate New Jersey federal case, argued that removing states’ ability to oversee such activity would expose consumers to serious risks.
Kalshi maintains that its contracts are a form of event trading distinct from traditional sports gambling and fall under CFTC jurisdiction. The company’s complaint emphasizes that the federal regulator has already established oversight for its markets, asserting that state-level interference disrupts lawful business activity. By bringing the matter before a federal court, Kalshi seeks to establish that Ohio’s regulatory actions violate constitutional principles governing federal preemption and interstate commerce.
RELATED TOPICS: Business
Review this New Post
Leave a Comment
User Comments
Comments for Kalshi Sues Ohio in Effort to Remain Open in the State