An Ohio federal judge on Monday said she’s obligated to “avoid absurdity” and ruled that Kalshi’s prediction markets in sports amount to acts of gambling — which should come under state regulations.
Kalshi, a New York-based predictive market where users can put money down to receive payouts on everything from athletics to politics and world events, had asked the court for an injunction against the Ohio Casino Control Commission. The regulatory body wants to stop Kalshi from operating as an “unlicensed sportsbook” that is “facilitating bookmaking” in the Buckeye State.
Kalshi said its sports offerings should be treated as federally regulated swaps, a type of contract often found in financial investing. U.S. District Court Judge Sarah Morrison disagreed.
