The Ohio Casino Control Commission warned sportsbooks in a letter sent to licensees Monday that their licenses could be at risk if they offer sports event contracts.
The letter, first reported by The Closing Line, appears to be the first instance of a regulator outright telling operators that involvement with prediction markets may put licenses in danger.
The letter follows recent moves by major sportsbooks toward getting into the world of prediction markets. FanDuel announced last week that it would partner with commodities trading giant CME to launch an event contracts marketplace, which would be regulated by the Commodity Futures Trading Commission as a futures commission merchant.
