Ohio Senator Introduces SB430 to Regulate and Tax Prediction Market Sports Contracts

Senator Bill DeMora introduces SB430 to tax and regulate prediction markets in Ohio, following legal disputes with Kalshi over sports betting contracts.

By: AXL Media

Published: Apr 28, 2026, 11:27 AM EDT

Source: Information for this report was sourced from Gambling Insider

Legislative Response to Emerging Betting Markets

Senator Bill DeMora, a Columbus Democrat and lead member of the Senate Select Committee on Gaming, introduced Senate Bill 430 to bring prediction markets under the same regulatory umbrella as traditional sportsbooks. The legislation aims to ensure that any platform taking wagers on sporting events, regardless of the terminology used, contributes to state tax revenue and adheres to established consumer protections. DeMora emphasized that if the state loses ongoing court battles regarding the legality of these platforms, they must be prepared to regulate and tax them like any other gambling entity.

Legal Friction Between States and Federal Regulators

The bill arrives amid a complex legal environment where Ohio and several other states have taken action against Kalshi and similar operators for alleged violations of state gaming laws. These prediction markets contend that they fall exclusively under the jurisdiction of the U.S. Commodity Futures Trading Commission, a stance that has led to multiple lawsuits involving state officials and federal oversight bodies. Recently, the Ohio Casino Control Commission announced its intention to levy a $5 million fine against certain New York based operators for conducting unlicensed sports betting activities within the state.

Conflicting Court Rulings Signal Supreme Court Intervention

Recent judicial decisions have created a fragmented legal landscape, with the U.S. Sixth Circuit Court of Appeals recently denying Kalshi a preliminary injunction against Ohio officials while simultaneously fast tracking their appeal. In contrast, the U.S. Third Circuit Court of Appeals recently ruled in favor of Kalshi in a dispute with New Jersey officials who attempted to halt sports related contracts. These contradictory outcomes across different federal circuits have increased expectations that the U.S. Supreme Court will ultimately have to resolve whether states possess the authority to block or regulate these exchanges.