Democratic Ohio Senator Bill DeMora is advancing legislative efforts to regulate sports prediction markets in response to a favorable ruling from the Sixth Circuit Court. In addition to aiming to classify these markets as a form of sports gambling, DeMora is seeking to prohibit election-based event contracts.
In April, DeMora introduced Senate Bill 430, designed to amend state law to include prediction markets in the definition of "sports gaming." This would require operators to secure licenses from the Ohio Casino Control Commission (OCCC) to operate legally in the state.
On October 13, DeMora also filed SB 479, targeting election-related gambling by adding "election gambling" to the banned activities list. This bill would criminalize the use of prediction markets for trading on political election events; currently, betting on political elections via state-licensed sportsbooks is not permitted.
"I will be bringing most of the bills I have introduced on several different subject matters back in 2027," DeMora stated, expressing hope that the recent court ruling would prompt action in the legislature. "They’re good government, they help the state budget and everything else. Hopefully, my colleagues will educate themselves about gambling matters, and we can move forward."
Ohio's General Assembly will reconvene for a lame-duck session later this month, but changes will need to be reintroduced at the start of the new two-year cycle in January 2027.
DeMora drew attention to the September ruling from the U.S. Court of Appeals for the Sixth Circuit, which clarified that prediction markets, such as Kalshi and Polymarket, could be regulated under the state's sports betting laws. The court's unanimous 3-0 verdict on September 25 dismissed a preliminary injunction request from Kalshi and determined that sports event contracts do not qualify as swaps under federal commodities law, allowing Ohio and Tennessee to enforce their betting regulations.
While SB 430 was referred to the Select Committee on Gaming in May, it made little headway. DeMora hopes that the Sixth Circuit's decision will energize legislative support for both his bills.
"The Sixth Circuit ruled that states can regulate predictive markets like sports gambling, which they are," DeMora asserted. "It’s time. Even our Republican governor said that these things are sports gambling. I agree with him. We need to regulate them and start taxing them like we’re doing with sports betting."
Although DeMora is the sole sponsor of SB 430, SB 479 has three Democratic co-sponsors. He emphasized that the emergence of prediction markets in Ohio, and across the nation, transcends party lines: "It’s an issue of states having the ability to regulate industries in their own state."
DeMora has previously warned that Ohio has lost "hundreds of millions of dollars just in the last two-year budget cycle" due to the lack of regulation in this area.
As Ohio prepares for a notable political transition in 2027, with a new governor succeeding current Republican Gov. Mike DeWine, the composition of the state Senate Gaming Committee is also shifting. DeMora pointed out that the previous chair, Sen. Nathan Manning—regarded as knowledgeable about gambling—has moved to the Ninth District Court of Appeals.
"At some point, my colleagues are going to need to get educated enough," DeMora remarked, noting that many legislators struggle to grasp the concept of prediction markets, which may hinder legislative progress.
Following the Sixth Circuit ruling, the OCCC has intensified its scrutiny of prediction market operators. Earlier this year, the Commission announced plans to impose a $5 million fine on Kalshi. In September, it issued cease-and-desist letters to ten prediction market platforms, demanding the cessation of sports event contracts in Ohio.
OCCC Interim Executive Director Andromeda Morrison stated, "The Sixth Circuit’s ruling makes clear that sports event contracts are subject to Ohio’s gambling laws."
Responses from targeted operators have varied; Polymarket has sought an injunction in federal court, claiming that Ohio's actions are discriminatory. Robinhood has agreed to halt new sports event contracts in Ohio while preserving a guarantee from the OCCC that state laws would not be enforced against it amid ongoing appeals. Governor DeWine indicated that legal actions would follow against operators defying the cease-and-desist orders.
Despite the challenges, DeMora expressed confidence in Ohio's legal standing against prediction market operators while urging state legislators to proactively address this evolving gambling landscape before the Senate acts on potential higher court rulings regarding sports event contracts.
