Robinhood & Coinbase to Halt Ohio Sports Prediction Market Contracts

Key Highlights

Four financial firms have agreed to stop offering sports event contracts in Ohio following cease-and-desist orders from state regulators, bringing the number of companies complying with the crackdown to five.

Four Financial Firms Agree to Halt Ohio Sports Contracts

Robinhood, Coinbase, Gemini, and Moomoo Financial have responded to the order from the Ohio Casino Control Commission (OCCC), agreeing to remove sports event contracts from their platforms. The first three are already in compliance with the new OCCC guidelines, while Coinbase has said it will end its offerings by November 13. They join Plus500US, which became the first operator to comply on October 21.

On October 2, Ohio issued cease-and-desist orders to 10 prediction market operators, including Robinhood and Polymarket. Those companies had until October 16 to confirm compliance. Half of the targeted businesses have now agreed to follow the state’s directive. The restrictions concern sports event contracts offered to people located within Ohio’s borders. Ohio also has a separate bill pending that would ban election-related trading on prediction market platforms.

Ohio is among at least 19 states that have taken regulatory or legal action against sports prediction market platforms, citing concerns over consumer protection and the legality of sports event contracts. The OCCC warned that firms ignoring its directives could face civil, administrative, or criminal consequences. Financial penalties tied to revenue earned from Ohio customers are also possible.

“Because these wagers lack the protections Ohio law requires, particularly for young and vulnerable people, the Commission must take action to fulfill its statutory responsibilities, protect consumers, and maintain fairness and integrity in sports gaming across Ohio,” said OCCC Interim Executive Director Andromeda Morrison.

Polymarket & Underdog Challenge Ohio’s Orders

Not every company has accepted Ohio’s position. Underdog and Polymarket have sued the state, while Novig, ProphetX, and Webull are discussing the orders with the OCCC. That leaves five companies complying, two challenging Ohio in court, and three talking with regulators.

Polymarket’s lawsuit challenges Ohio’s sports betting licensing rules. The company argues that requirements involving physical locations and servers within the state unfairly restrict interstate commerce. Its case adds another legal challenge to the dispute over sports prediction market regulation.

Ohio’s action followed a September decision by the U.S. Court of Appeals for the Sixth Circuit involving Kalshi. The court found that Kalshi’s sports event contracts did not qualify as swaps under federal commodities law. It also concluded that federal law would not override state gambling rules even if the contracts were swaps.

Kalshi was excluded from Ohio’s cease-and-desist orders because it was already challenging the state’s authority in court. Kalshi sued Ohio regulators in October 2025, arguing that federal commodities law gave the CFTC exclusive jurisdiction over its sports event contracts. Although the Sixth Circuit upheld the denial of Kalshi’s request for a preliminary injunction in September 2026, the company has sought a rehearing and is also pursuing a separate state court challenge to a proposed $5 million penalty.

Ohio Warns Gaming Licensees & Technology Providers

Ohio is also targeting businesses supporting prediction market platforms rather than offering contracts directly. In an October 20 letter, the OCCC warned gaming operators and suppliers about working with unlicensed platforms offering sports event contracts. Such relationships could threaten their gaming licenses.

The warning covered market making, liquidity services, integrity monitoring, data security, and technology assistance. Licensees were told to stop providing those services immediately and confirm compliance by October 30. The commission said some businesses met the deadline, while others had not reported back.

Regulators plan to follow up with license holders that have not confirmed their actions. The OCCC did not identify which businesses complied or failed to respond. With lawsuits pending and discussions continuing, Ohio’s effort to enforce its sports betting rules is not yet complete.