Ohio orders popular crypto, trading platforms to stop unlicensed sports betting

CLEVELAND, Ohio – The Ohio Casino Control Commission has issued cease-and-desist letters to three companies, ordering them to immediately stop offering sports betting products in the state without a license.
The state sent notices on Monday to KalshiEX LLC, along with Robinhood Markets Inc., and Foris DAX Inc., which operates . The letters say the companies have been offering event contracts on sporting events to Ohio residents, in violation of the state’s gambling laws.
Kalshi and , a popular cryptocurrency platform, had been providing event contracts that allowed users to wager money on the outcome of sporting events, according to the commission. These contracts functioned as sports wagers, and required a license under Ohio law, the state said.
Robinhood Markets Inc., a popular trading platform, was also cited for facilitating similar sports betting activities. The letter said Robinhood has been offering event contracts in partnership with Kalshi, which effectively enabled unlicensed sports wagering within the state.
Additionally, the commission raised concerns about responsible gaming practices, highlighting that the companies’ offerings may have been accessible to individuals under 21, which violates Ohio’s legal gambling age restrictions.
“Purchasing a contract based on which team a person thinks will win a sporting event is no different than placing a bet through a traditional sportsbook,” Commission Executive Director Matthew Schuler said in a statement. “The only difference is that these event contracts do not have the consumer protections required under Ohio law and are accessible to Ohioans under 21 years of age.”
The three companies have until April 14 to notify the commission that they have stopped all unlicensed gaming operations in the state. The cease-and-desist letters warn that failure to comply with Ohio’s sports gaming laws could result in civil and criminal penalties.
Kalshi, Robinhood and did not immediately respond to requests for comment.
Ohio legalized sports betting in 2023, but operators must obtain a license to conduct such activities legally. The state’s regulatory framework includes measures to ensure consumer protections and responsible gaming practices.