Ohio Governor Warns Lawsuits Loom for Prediction Market Operators Over Cease-and-Desist Orders

Ohio Governor Mike DeWine stated that the state will take enforcement action against prediction market platforms that have refused to obey cease-and-desist orders issued by state regulators ¹. Speaking to reporters, DeWine indicated that Ohio Attorney General Andy Wilson is preparing to initiate lawsuits against firms continuing to offer sports event contracts inside the state, explaining that regulatory demands require direct judicial enforcement ¹. The move follows orders sent in late September by the Ohio Casino Control Commission (OCCC) mandating 10 firms to halt unlicensed sports-related event contracts by Friday, Oct. 16 ¹.

The OCCC issued these notices to 10 entities: Underdog, Gemini Titan, Coinbase, Prophet X, Novig, Robinhood, Polymarket, Plus500, Moomoo, and Webull ¹. Regulators grounded their enforcement in a Sixth Circuit Court of Appeals decision upholding Ohio’s authority to apply state gaming statutes against prediction platform Kalshi, which was excluded from the new round of letters due to separate, ongoing litigation ¹. According to an OCCC spokesperson, one operator has complied with the mandate, while the commission remains in talks with several others ¹. Robinhood defended its offerings by stating its event contracts are regulated at the federal tier by the Commodity Futures Trading Commission through a registered derivatives subsidiary ¹.

Polymarket Sues Regulators in Federal Dispute

Polymarket responded to the OCCC's enforcement letter by filing a federal lawsuit against the commission and Wilson, becoming one of two operators actively litigating the matter ¹. In its complaint, Polymarket argued that the OCCC's demands breach the Interstate Commerce Clause of the U.S. Constitution and are preempted by the federal Commodity Exchange Act ¹. The company noted that Ohio treats unlicensed sports gaming as a felony while restricting permits primarily to operators maintaining physical in-state infrastructure ¹. Polymarket contends that conforming to Ohio's licensing framework would require partitioning its services exclusively for in-state users, unlawfully fragmenting interstate trade ¹. The company is seeking preliminary and permanent injunctions to block the state from enforcing its cease-and-desist demand ¹.