Ohio regulator orders Polymarket US and nine others to stop sports contracts by Oct 16
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What happened
The Ohio Casino Control Commission issued cease-and-desist letters dated October 2, 2026 to ten prediction-market operators and brokers, including Polymarket's U.S. entity, addressed as PM US Tech (QC Tech LLC), ordering them to stop offering sports event contracts in Ohio. RG.org reported the orders on October 6. The letters were signed by Interim Executive Director Andromeda Morrison and give each company 14 days from the letter date, until October 16, to confirm compliance in writing. The other recipients include Coinbase, Robinhood Derivatives, Webull Financial and Gemini Titan. Kalshi was not a recipient.
The letters rely on the September 25, 2026 decision of the 6th U.S. Circuit Court of Appeals in KalshiEx LLC v. Schuler, which the commission says held that the Commodity Exchange Act neither applies to these contracts nor preempts Ohio's sports gaming law. The commission says none of the ten holds an Ohio sports gaming license. The Polymarket letter says failure to comply may lead to administrative, civil, nuisance or criminal actions. Whether Polymarket complied has not been reported. RG.org adds that a federal judge in Illinois ruled differently on October 2.
Key points
- Ohio Casino Control Commission letters dated October 2, 2026 went to ten firms, including Polymarket's U.S. entity.12
- Each firm had 14 days, until October 16, to confirm in writing that it had stopped offering sports event contracts in Ohio.12
- The order relies on the 6th Circuit's September 25 ruling in KalshiEx LLC v. Schuler.12
- The Polymarket letter warns of administrative, civil, nuisance or criminal actions for non-compliance.12
- A federal judge in Illinois ruled on October 2 that Kalshi's sports contracts are likely swaps, the opposite direction.2
Why it matters
The letters seek to end sports event contracts for Ohio residents. Whether Polymarket complies, and what that costs it in volume, has not been reported.
The letter to Polymarket says the commission can seek a civil penalty equal to the money obtained from Ohio users and may pursue its officers, directors and parent companies. That adds a possible liability on top of lost access.
The 6th Circuit and an Illinois federal judge reached opposite views on preemption a week apart. That leaves the legal status of the product varying by state.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Funding round | Oct 2025 | $1.2B | $150M | Founders Fund |
| Private placement | Oct 2025 | $350M | $55M | Blockchain Capital |
| Series D | Oct 7, 2025 | $9.0B | $1.0B | Intercontinental Exchange |
| Series E | Mar 27, 2026 | $15B | $1.0B | Unknown |
| Funding round | Aug 31, 2026 | $21B | $1.0B | 1789 Capital |
Updated
Fact-check
- The commission's cease-and-desist letters are dated October 2, 2026 and went to ten firms including Polymarket's U.S. entity.Confirmed by [1] the letter to PM US Tech (QC Tech LLC), dated October 2, 2026 and signed by Andromeda Morrison; [2] RG.org lists the ten recipients.Verified
- Recipients have 14 days, until October 16, to confirm compliance in writing.Confirmed by [1], which requires written notice no later than fourteen days after the letter date; [2] RG.org gives October 16.Verified
- The letters rely on the 6th Circuit's September 25, 2026 decision in KalshiEx LLC v. Schuler.Confirmed by [1], which cites the decision and says the Commodity Exchange Act neither applies to these contracts nor preempts Ohio's sports gaming law; [2] states the same.Verified
- Non-compliance may bring administrative, civil, nuisance or criminal actions under Ohio Revised Code chapters 2915, 3767 and 3775.Confirmed by [1] the letter to Polymarket; [2] RG.org lists the same action types.Verified
- The commission may seek a civil penalty equal to money obtained from Ohio users and may pursue officers, directors and parent companies.Confirmed by [1] the letter to Polymarket and by [2] RG.org.Verified
- None of the ten firms holds an Ohio sports gaming license.Confirmed by [2] RG.org; [1] says offering sports gaming without a commission license violates Ohio law.Verified
- Kalshi was not a recipient, and an Illinois federal judge ruled differently on October 2.Confirmed by [2] RG.org on both points.Verified
- No source reports whether Polymarket complied.Neither [1] nor [2] reports a response from Polymarket; [2] says the October 16 responses will show whether firms exit Ohio or challenge the orders.Verified
Sources
- [1]Ohio Casino Control Commission (opens in a new tab)Ohio Casino Control Commission cease-and-desist lettersPolymarket's failure to abide by this notice may result in the Commission pursuing all legal remedies
- [2]RG.org (opens in a new tab)Ohio Orders 10 Prediction Markets to Stop Offering Sports Contracts
