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Ohio’s casino regulator sent cease-and-desist letters to 10 prediction markets and brokers after the 6th U.S. Circuit Court of Appeals ruled that federal commodities law does not preempt Ohio’s sports gaming law, according to RG.org’s Oct. 21 report. The report does not identify when the letters were sent or name their recipients.
The Ohio action comes amid conflicting federal appeals court rulings over whether states can regulate sports event contracts offered through prediction markets.
Appeals courts split over sports event contracts
New Jersey has asked the U.S. Supreme Court to hear its case against Kalshi and hold that prediction markets are subject to state gaming laws.
The state is seeking review of a 2-1 decision by the 3rd U.S. Circuit Court of Appeals that found the Commodity Exchange Act bars states from regulating sports event contracts on prediction markets. That decision allows Kalshi and other platforms to continue offering those contracts in New Jersey alongside licensed online sportsbooks.
The ruling conflicts with a 9th Circuit decision allowing Nevada to prohibit the contracts. Ohio’s enforcement followed the separate 6th Circuit ruling concerning Ohio law.
A coalition of 39 states and the District of Columbia, 146 Indian tribes and tribal organizations, the NFL and industry groups filed briefs supporting New Jersey’s request. The report does not give a timetable for Supreme Court action.
New Jersey codifies responsible gambling reviews
Separately, New Jersey has adopted mandatory, data-driven responsible gambling regulations for online operators. The state says it is the first to require a uniform system for identifying and responding to signs of problem gambling.
Operators must appoint a responsible gaming lead and review patrons who meet specified financial or behavioral triggers. Minimum review thresholds include deposits exceeding $10,000 in 24 hours, deposits exceeding $100,000 in 90 days and account turnover exceeding $1 million in 90 days.
A trigger does not by itself establish that a patron has a gambling problem. Operators must evaluate the available information before determining whether the patron is at risk.
Interventions include marketing restrictions and account closure
The New Jersey rules provide up to three intervention phases: an informational email, a mandatory video tutorial before further wagering, and live contact with the responsible gaming lead or a designee.
Patrons in the second or third phase cannot receive direct advertising, including promotions and complimentary items. If three contact attempts at least 24 hours apart fail in the third phase, the account must be suspended until the conversation occurs. Accounts must be closed if patrons still meet the at-risk criteria after that phase.
The source identifies these as New Jersey requirements, not changes to Ohio law. Neither the release nor the posted rule text listed a compliance date.
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Source: As reported by RG.
