Ohio Targets Prediction Markets, Orders Licensed Sportsbooks to Comply

Ohio gaming regulators are warning licensed online sportsbooks that if they continue to offer prediction market services for sports event contracts, their ability to operate in the state could be jeopardized. The Guardians of Traffic sandstone statues are pictured on the Hope Memorial Bridge in Cleveland. Ohio gaming regulators are warning online sportsbooks to immediately cease all prediction market services related to sports event contracts. (Image: Shutterstock) In a letter dated Oct. 20, Ohio Casino Control Commission (OCCC) Interim Executive Director Andromeda Morrison said she is “deeply concerned” over reports that online sportsbooks licensed by her agency continue to “facilitate, support, or otherwise provide services” to prediction markets engaged in sports event contract trading. Certain Ohio sportsbooks are reportedly providing liquidity and market making, integrity monitoring, and data security to prediction markets offering sports markets within the Buckeye State. In September, a federal appeals court in Ohio ruled that sports event contracts do not meet the legal threshold to be considered a “swap” subject to the Commodity Futures Trading Commission’s exclusive regulatory jurisdiction. The ruling affirmed Ohio’s authority to enforce its sports betting laws. Suitability at Risk The OCCC regulates 13 online sportsbooks, including FanDuel and DraftKings, which continue to operate sports prediction markets in states where they aren’t licensed to conduct sports betting. In early October, the OCCC issued cease-and-desist notices to 10 sports prediction market platforms operating in the state. Morrison warned that any licensed sportsbook offering services or support to the unlicensed sports prediction markets jeopardizes its regulatory suitability. A licensee’s decision to provide services to, partner with, or otherwise support an entity engaged in unlicensed sports gaming in Ohio reflects on the licensee’s character, integrity, honesty, and reputation. Such conduct also undermines public confidence in Ohio’s regulated sports gaming and fantasy contest markets,” Morrison wrote. Licensees that do not immediately cease such activities risk having their suitability reopened. A finding of unsuitability could result in the sportsbook having its license suspended or revoked. Governor Regrets Sports Betting Ohio will elect a new governor on Nov. 3, as Gov. Mike DeWine (R) is term-limited. DeWine has been vocal about signing sports betting into law. “People have asked me, ‘What mistakes did you make?’ And I’ll lead with signing a bill for sports gaming,” DeWine said in January. DeWine said sports betting has caused a “huge problem” among young males. “We have many of them addicted, many of them spending money that they do not have,” DeWine said. Republicans have held Ohio’s governorship continuously since 1991, except for Democrat Ted Strickland’s term from 2007 to 2011. Prediction markets suggest the office is poised to flip blue, with Democratic candidate Amy Acton emerging as the heavy favorite. Acton’s shares of winning the Nov. 3 contest are currently trading at 79 cents. Republican Vivek Ramaswamy trails as the underdog at 21 cents following severe backlash over a negative campaign ad featuring Acton’s estranged mother. The post Ohio Targets Prediction Markets, Orders Licensed Sportsbooks to Comply appeared first on Casino.org.