Ohio gambling regulator warns sportsbooks about prediction market links
The Ohio Casino Control Commission (OCCC) has warned licensed sportsbooks, suppliers and other gaming businesses that supporting unlicensed sports prediction markets could result in the suspension or revocation of their state licences.
The gambling regulator ordered affected businesses to immediately cease providing services to prediction-market platforms offering sports event contracts to Ohio residents without a state gambling licence.
Companies must confirm their compliance by October 30.
In a notice dated October 20, the regulator expressed concern that some licensed gaming businesses were continuing to support prediction markets through services including market making, liquidity provision, integrity monitoring and data security.
The Commission warned that maintaining regulatory suitability is an ongoing obligation for gambling licensees.
“A licensee’s decision to provide services to, partner with or otherwise support an entity engaged in unlicensed sports gaming in Ohio” raises questions about its suitability, the notice said.
The warning extends beyond betting sites to technology suppliers, fantasy sports operators, testing laboratories and integrity monitoring companies.
Ohio has already issued cease-and-desist notices to 10 prediction-market businesses, including Polymarket, Robinhood and Coinbase, as part of its attempt to prevent unlicensed sports event trading.
The regulator’s position follows federal court proceedings concerning the extent to which prediction markets fall under federal commodities regulation rather than state gambling laws.
Prediction-market companies have argued that their event contracts are financial instruments regulated by the Commodity Futures Trading Commission.
Ohio maintains that sports-related contracts offered to residents without a state licence constitute unlawful gambling.
The latest enforcement action creates additional commercial risks for licensed sportsbooks that maintain relationships with prediction-market businesses.
It also raises questions for major operators developing prediction-market products outside their existing state-regulated sports betting operations.
