- Michigan wants Kalshi held in contempt for not following its court-ordered ban, one Coinbase agreed to follow on Oct. 7.
- Kentucky’s prediction market case against Polymarket was recommended to return to state court.
- Ohio renewed its cease-and-desist letter against Robinhood Derivatives and nine other firms, including Polymarket.
DETROIT – States are capitalizing on their Sixth Circuit win against Kalshi, which opened the door for states to enforce their gambling laws against sports-event contracts. Michigan, Ohio, and Kentucky ramped up their enforcement battles with prediction market operators in recent days.
Michigan Wants Kalshi Held In Contempt For Non-Compliance
Even after its first win against Kalshi’s sports event contracts that resemble sports betting, Michigan is turning up the heat on Kalshi. The state wants Kalshi held in contempt for allegedly failing to follow its court-ordered ban against sports contracts.
The main issue is the marketing, since Michigan’s Sept. 1 order prohibited Kalshi from advertising their sports products in Michigan. The Michigan Gaming Control Board noticed emails from Kalshi that promoted sports betting to accounts based in Michigan, while others reported YouTube advertisements promoting trades on NFL games.
Meanwhile, Robinhood and Coinbase agreed to stop offering their sports-event contracts. Michigan’s contempt request for Kalshi aims to reinforce the authority it gained from its court victory.
Kentucky Recommended To Bring Polymarket Suit Home
Kentucky’s lawsuit against Polymarket was recommended to return to state court since Polymarket hadn’t established federal jurisdiction. U.S. District Court Magistrate Judge Edward B. Atkins issued the Report and Recommendation, advising the court to grant Kentucky’s motion to keep the case in a state circuit court.
The lawsuit alleges that Polymarket offers Kentucky sports betting without licensing approval, contends that wagers placed by Kentucky residents should be voided or refunded, and claims that Polymarket’s website and app are illegal gambling devices under state law.
Ohio’s Compliance Deadline Against Robinhood: Today
Ohio has been at the forefront of regulation against prediction markets, and that continues with Friday’s cease-and-desist order deadline for Robinhood. The order also includes firms like Coinbase, Gemini, Polymarket, and more operators that offer sports-related event contracts.
The cease-and-desist order follows a Sixth Circuit ruling that allowed Ohio to enforce its gambling laws against sports event contracts. While that ruling maintains that event contracts operate under federal commodities rules, Ohio’s enforced sports event contracts in compliance with their state gambling laws.
