(TOLEDO) - Ohio gaming regulators are moving to impose a $5 million civil penalty against a prediction market company accused of operating without proper authorization.
The Ohio Casino Control Commission says KalshiEX LLC offered contracts tied to sports outcomes in the state without a required license under Ohio's sports gaming laws.
Regulators say the company continued operating in Ohio despite prior compliance concerns.
Kalshi allows users to trade contracts based on real-world events, including sports, and operates under federal oversight through the Commodity Futures Trading Commission. State officials argue those activities still fall under Ohio's sports gaming regulations.
The company says it is reviewing the proposed fine and maintains it operates as a federally regulated exchange, not a traditional sportsbook.
The case remains under administrative review, with regulators limiting further comment as the process continues.