Kalshi could face a $5m fine from the Ohio Casino Control Commission (OCCC) after the regulator accused the prediction market of offering unlicensed sports betting in the state.
The OCCC is seeking the monetary fine and/or civil penalty, while Kalshi is entitled to a hearing on the matter.
In a letter sent to Kalshi’s legal team on Tuesday, 14 April, OCCC executive director Matthew Schuler laid out the regulator’s reasoning behind the action.
Schuler wrote that since January 2025, Kalshi has been conducting sports betting in Ohio without the required licence.
The OCCC chief said Kalshi’s sports event contracts allowed users to bet, and is therefore “engaging in the business of accepting wagers on sporting events”.
The regulator alleged Kalshi is breaking Ohio law by not obtaining the requisite licence, as required under the state’s Sports Gaming Act.
The letter also argued Kalshi allows 18- to 20-year-olds to use its site and that the firm’s self-exclusion programme is “less extensive” than the state’s.
Furthermore, the letter claimed Kalshi’s advertising does not meet requirements of Ohio law and that some betting markets available on the site are not approved by the OCCC.
Schuler highlighted Ohio law allows the OCCC to impose civil penalties to operators “engaged in unlicensed sports gaming”.
In determining the level of a penalty, the OCCC may “consider the risk to the public and to the integrity of sports gaming in this state”, as well as other factors.
The punishment is set to be the largest ever handed down by OCCC. The regulator previously fined DraftKings $425,000 in November 2024 for allowing college prop bets.
The letter stated: “Based upon the foregoing, and pursuant to Ohio law, Kalshi is subject to administrative action for operating or conducting sports gaming without a licence, failing to cooperate with the Commission (which includes failing to abide by the Commission’s cease-and-desist order and failing to provide the Commission with the information it requested) and engaging in conduct that undermines the integrity, or public confidence in, sports gaming in Ohio.”
In response, a Kalshi statement read: “We are disappointed in this latest development, especially considering our ongoing litigation with Ohio and recent rulings in other courts confirming our right to operate as a federally licensed exchange. We are reviewing the Gaming Commission’s letter.”
The notice of the fine comes after an Ohio judge ruled last month that Kalshi’s sports event contracts constituted a form of gambling.
The OCCC had already sent Kalshi a cease-and-desist order in April 2025, to which the New York-based company did not adhere to.
Kalshi continues to argue it is regulated at a federal level by the Commodity Futures Trading Commission and that this supersedes state-level gaming rules.
Kalshi sued Ohio officials in October last year following the cease-and-desist order.
Kalshi, which is valued at around $22bn, has a revenue run rate of $1.5bn and is reporting trading volume of more than $3bn a week, as per the Bank of America.
Last week, three Ohio lawmakers announced plans to file bills that would put significant restrictions on sports betting in the state.
Sports betting launched in the Buckeye State in January 2023.
Licensed sportsbooks generated a combined $69.8m in revenue during February 2026, according to the OCCC.
The post Ohio issues Kalshi with $5m fine over alleged unlicensed sports betting first appeared on EGR Intel.
Ohio Casino Control Commission pursues record penalty against the prediction markets platform, having previously sent a cease-and-desist order in April 2025
The post Ohio issues Kalshi with $5m fine over alleged unlicensed sports betting first appeared on EGR Intel.