Kalshi Sues Ohio Regulators Over Warning to Licensees Who Want to Work With Prediction Market

Submitted by C Costigan on

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C Costigan

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Kalshi Tuesday filed a federal lawsuit against the Ohio gambling regulator and the state attorney general seeking preliminary and permanent injunctions against actions, it claims, that could negatively impact its future business relationships.

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The case, filed in the the U.S. District Court for the Southern District of Ohio, claims that the Ohio Casino Control Commission (OCCC) threat to the licenses of vendors who may do business with prediction market Kalshi is potentially detrimental to that company’s business and beyond the OCCC’s purview.

The OCCC on Aug. 25 told licensed sportsbooks and vendors in Ohio that working with Kalshi – which is federally regulated by the Commodity Futures Trading Commission (CFTC) and is therefore immune from state regulation – “calls into question the reputation of the licensee and the integrity of sports gaming in Ohio.” The Michigan Gaming Control Board issued a similar warning last week, and Arizona’s Dept. of Gaming warned state-regulated sportsbooks against partnering with prediction markets in September. (source: InGame)

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(Crime) - Two Arrested Over Allegedly Running Gambling Fish Arcades - The Jacksonville (Florida) Sheriff’s Office says two men have been arrested after a raid uncovered what investigators describe as an illegal gambling house operating out of an unmarked building on the city’s Northside. According to an arrest report, 32-year-old Mahab Alhanna and 39-year-old Stanley Burke were taken into custody after JSO’s Vice Unit and SWAT team executed a search warrant Friday night at a building on Haverford Road. Officers found multiple gambling machines inside, which were seized and released to the Florida Gaming Commission. JSO said in the report that its Vice Unit has taken note of a growing number of illegal gambling establishments across Duval County, often marketed as “Internet Cafes” or “Adult Arcades.” Many of these businesses, the agency said, have no signs outside and little indication of what’s actually happening inside.

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(Prediction Markets) - DraftKings CEO Not Concerned About Prediction Market Market Share - From #G2E: DraftKings CEO Jason Robins said Tuesday, “I just don’t see a world” where customers choose prediction markets over sportsbooks in states where both are legal. “In a state with legal sports betting, it's apples and oranges,” @JasonDRobins said. “The product of the sportsbook and what it’s able to do is so much stronger than the product of a prediction market. (source: InGame)

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(Prediction Markets) - Kalshi to Enter Online Casino Market? -According to Eilers & Krejcik Gaming, Kalshi is kicking the tires around a casino-like prediction market. “Unconfirmed but growing chatter suggests Kalshi may be exploring a prediction markets (PM)-based casino-like product,” EKG reports. “The contours of a PM casino-ified product are unclear, and potential reactions from regulators, courts, and Congress even murkier. … Still, there is some speculative tailwind potential.” This speculation isn’t isolated. Social media discussions highlight a growing interest in prediction markets as a “new casino type,” with users pondering applications such as betting on roulette outcomes or integrating them into broader gambling ecosystems. (source: CasinoReports)

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(Sweepstakes Casinos) - California Sweepstakes Casino Ban Coming to Fruition - Pechanga Band of Indians. Editor of http://Pechanga.net, Victor Rocha, confirmed early Tuesday that California Governor Gavin Newsom is set to sign a sweepstakes casino ban bill into law. "I was told Governor Newsom will sign the sweepstakes bill next week. I wish he would do it tomorrow while I’m at G2E. Just seems apropos," Rocha announced via his Twitter account. The new law would effectively ban sweepstakes casinos like Chumba from operating in the Golden State.

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(Prediction Markets) - New York Stock Exchange Joins Forces With Polymarket - Big news from the world of prediction markets as the owner of the New York Stock Exchange annouced Tuesday a $2 billion investment in Polymarket

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(Gambling) - Entain CEO Warns Gambling Tax Rise Could Lead To High Street Betting Shop Closures - In an interview with The Times, Stella David, brand operator for Entain, said: “At the end of the day we want to make a profitable global business. There are other markets we have to pivot to as being more worthy of investment. There will be consequences. Having a dislocating increase in tax will have a dislocating impact on the industry.”

 

- Chris Costigan, Gambling911.com Publisher 

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