Senator Bill DeMora has introduced legislation that would classify prediction market operators as sportsbooks, contingent on a favorable ruling from the U.S. Supreme Court regarding Kalshi.
On Monday, the Ohio lawmaker filed Senate Bill 430, which aims to bring prediction markets under the state's sports betting regulations. DeMora stated that this framework would allow Ohio to oversee these markets if the Supreme Court decides in their favor, rather than leaving states like Ohio to attempt blocking them.
“If we lose the court cases and they say they can operate, then they should be taxed and regulated accordingly,” DeMora remarked during an interview with Gambling Insider. He emphasized the need for equal treatment in taxation and regulation for all operators in the gambling space.
As the lead Democrat on the Ohio Senate Select Committee on Gaming, DeMora is well-acquainted with gambling legislation. He expressed strong opinions about Kalshi, labeling it a “sham” and equating its operations with sports betting.
“They should be regulated like everyone else,” he insisted. “They are essentially taking bets on sporting events, and we have laws governing that.”
Currently, Ohio is among several states that have initiated legal action against Kalshi and similar operators for alleged violations of gaming laws. Kalshi, along with its competitors, contends that the U.S. Commodity Futures Trading Commission (CFTC) is the sole regulatory authority for their operations.
In recent developments, the Ohio Casino Control Commission announced plans to impose a $5 million fine on New York-based operators for accepting sports bets without a license. Additionally, a three-judge panel from the U.S. Sixth Circuit Court of Appeals denied Kalshi a preliminary injunction against Ohio officials but expedited the appeal process.
On the other hand, the same court approved Kalshi’s request to allow Tennessee to appeal a lower court's decision that granted the exchange an injunction against the state's Sports Wagering Council.
The conflicting rulings at various court levels heighten the possibility of the Supreme Court addressing this matter. There is speculation that Congress may also intervene, as several lawmakers from both parties are considering legislation that would limit prediction markets from offering contracts on sports and other sensitive topics.
Despite these developments, DeMora expressed skepticism about Congress's ability to act effectively, citing its current dysfunction.