Robinhood and Coinbase to Halt Sports Contracts in Ohio

The Ohio Casino Control Commission (OCCC) sent cease-and-desist orders to 10 prediction market operators on October 2 and gave them until October 16 to comply. Half of the companies have now reported that they are following the directive. Robinhood, Gemini and Moomoo Financial have stopped offering new sports event contracts to customers in the state. Coinbase has agreed to halt this service until November 13. Plus500US's compliance on October 21 has also been confirmed.

Underdog and Polymarket have sued the state. Talks between Novig, ProphetX and Webull and the commission are ongoing. In its lawsuit, Polymarket argues that Ohio's licensing framework is unconstitutional. The company claims that physical presence and in-state server requirements discriminatorily restrict interstate commerce.

The state's move follows a September ruling by the Sixth Circuit Court of Appeals against Kalshi. According to the court, Kalshi's sports event contracts are not swaps under federal commodities law. The court further ruled that, even if they were, federal law neither expressly nor implicitly invalidates state gambling laws. Kalshi was not among the 10 companies that received orders because it is already in litigation with the state.

The OCCC said that companies that fail to comply may face administrative, legal and criminal action, and financial penalties tied to revenue earned from Ohio customers may be imposed. In an October 20 letter, the commission also warned operators and suppliers. It was reported that supporting unlicensed prediction markets could put their licenses at risk.