Ohio Senator Pushes Sports Prediction Market Rules and Election Betting Ban

Ohio state Sen. Bill DeMora is pushing legislation to regulate sports prediction markets and prohibit election betting, arguing that a recent federal appeals ruling strengthens the case for state oversight.

The Columbus Democrat has introduced two bills addressing different parts of the prediction-market industry. Senate Bill 430 would classify sports event contracts as sports gaming under Ohio law, while Senate Bill 479 would prohibit gambling on political elections.

Neither proposal has passed.

"We need to regulate them and start taxing them like we're doing with sports betting," DeMora told SBC Americas in a Nov. 3 interview.

Two bills target different markets

SB 430, introduced April 27, would explicitly include buying, selling, or trading contracts tied to sporting outcomes within Ohio's definition of sports gaming. That would bring the activity under the Ohio Casino Control Commission's existing framework, including licensing, age restrictions, responsible-gambling protections, and enforcement requirements.

The bill was referred to the Senate Select Committee on Gaming on May 13 but has not advanced further.

SB 479 takes a different approach. Introduced Oct. 13, the legislation would prohibit election-related gambling, including on prediction market apps, tied to election results, nominations, political conventions, and appointments.

Unlike the sports proposal, which establishes a regulatory pathway, SB 479 would make certain election-related wagering and contract trading unlawful. DeMora is the sole sponsor of SB 430. Democratic Sens. Nickie Antonio, Willis Blackshear Jr. and Casey Weinstein joined him in sponsoring the election bill.

Neither measure has received a Senate floor vote.

Appeals court backs Ohio's authority

DeMora's renewed push follows a Sept. 25 ruling from the Sixth Circuit Court of Appeals in cases involving Ohio, Tennessee, and Kalshi.

The court rejected Kalshi's argument that its sports event contracts were protected from state gambling enforcement by federal commodities law.

Judges found that Kalshi had not demonstrated its contracts qualified as swaps under the Commodity Exchange Act. They also concluded that even if the contracts were swaps, federal law would not override the states' gambling regulations.

The decision upheld an Ohio court's denial of preliminary protection for Kalshi and overturned an injunction shielding the company from Tennessee enforcement. Kalshi disputes the ruling and requested rehearing Oct. 9. The litigation remains ongoing.

Ohio increases enforcement pressure

Ohio regulators have already begun pursuing prediction-market operators under existing gambling laws. On Oct. 2, the Casino Control Commission sent cease-and-desist letters to 10 operators and brokers, including Polymarket, Robinhood, and Coinbase, demanding that they stop facilitating sports event contracts in the state.

The pressure has produced results.

According to Robinhood's Oct. 28 securities filing, its derivatives business agreed to stop offering new sports event contracts in Ohio by Nov. 2. In return, regulators agreed to suspend enforcement against the company while related appeals remain pending.

Other operators continue challenging Ohio's position in court. DeMora believes the Sixth Circuit ruling provides additional support for legislative action, although he acknowledged that his proposals may need to be reintroduced in 2027.