Kalshi, a platform best known for allowing users to trade contracts on real-world events, took its battle to the legal arena, filing a lawsuit against the Ohio Casino Control Commission (OCCC) and the state’s attorney general in early October. The move follows a cease-and-desist order issued in the spring, which accused the company of “operating online sports gaming” without proper authorization.

Kalshi, a platform that allows users to trade contracts on real-world events ranging from election results to sports outcomes, insists that it’s not in the gambling business. The company is arguing that its contracts are federally regulated “economic instruments” under the Commodity Futures Trading Commission (CFTC). But the OCCC disagrees with this, and they are calling Kalshi’s operations a thinly veiled form of betting that falls under state law.

This legal clash highlights the divide between innovation in traditional gambling and event trading. Unlike slot machines or table games, Kalshi’s contracts are framed as investments, though state officials worry that they may pose risks to Ohio’s gaming licenses.

Looking at reviews of top casino apps, these regulated gaming apps operate strictly within state guidelines. Not only are they licensed to provide games like slots and poker, but they are also required to offer their games, bonuses, and even payment options within the regulations as per their jurisdiction. Now, compared to these gambling platforms, Kalshi maintains their stance.

However, the company isn’t just facing trouble in Ohio. The company’s been fighting similar battles across the country. The company managed to secure a preliminary injunction after getting slapped with a cease-and-desist order in Nevada, so they’re still operating there for now. The New Jersey courts granted them a temporary injunction, too, but the state appealed, bumping the case up to the Third Circuit Court. Maryland and Massachusetts have ongoing legal fights with Kalshi as well, with appeals that are stacking up on both sides, while tribal governments in California and Wisconsin are also bringing federal courts into the mix to clarify what’s actually legal here. Beyond that, Illinois, Montana, Arizona, South Carolina, Kentucky, and Georgia have all either sent warning letters or launched legal actions of their own.

This patchwork of state-by-state regulations is creating a real headache for Kalshi and other prediction markets. They’re trying to innovate while dodging landmines in every direction. Ohio’s case could end up being a major turning point, potentially answering whether states can shut down platforms that already have federal approval.

Legal experts say that these disputes really highlight the clash between new financial technologies and old-school gambling rules. Unlike your typical mobile casino apps, Kalshi exists in this weird gray area: they’re backed by federal regulators but are constantly under fire from state authorities. For everyday users and traders who are interested in regulated online gaming, this contrast is pretty stark. Traditional platforms offer clarity and structure, while Kalshi and similar services are pushing boundaries and paying the price in courtroom battles.

The federal lawsuit will play out in court later this year. Ohio regulators, on the other hand, have made it perfectly clear that they are keeping that cease-and-desist order in place until a judge weighs in and makes a decision. Whatever happens here, people across the country will be watching closely. The outcome could reshape the entire prediction market landscape and redefine where federal authority ends and state control begins.