On April 14, the Ohio Casino Control Commission proposed a $5m fine against Kalshi, believing the operator has been conducting business in the state without a license since January 2025.
 

Key Points

Kalshi stated the regulator’s ‘rush to impose an unprecedented fine’ may cause irreparable harm to the operator

Within the filing, Kalshi also urged the court to block the Commission’s enforcement request by granting the operator’s motion for immediate injunction

A federal judge in Ohio had previously ruled in favor of state regulators when Kalshi filed a lawsuit over attempts to prohibit its operations
 

After receiving a letter of intent from the Ohio Casino Control Commission to issue a $5m monetary penalty against the operator, Kalshi has described the action as an "extraordinary and regrettable step” in its ongoing legal battle with the state regulator. 

Kalshi went on to state that the Commission’s “rush to impose an unprecedented fine” even before the court ruled on its motion for injunction “leaves no doubt Kalshi will suffer irreparable harm.”

The operator also believes its been forced into a “Hobson’s choice” of either violating state law and potentially facing millions of dollars in liability or obeying preempted law while the appeal is ongoing. 

Within its new Sixth Circuit filing, Kalshi requested the Court of Appeals block the Ohio Casino Control Commission’s enforcement action by granting its motion for immediate injunction. 

The Ohio Casino Control Commission originally issued a letter of intent and proposed a $5m fine against Kalshi on April 14, believing the operator has been conducting business in the state without a license since January 2025.

"By continuing to operate without seeking licensure, Kalshi has effectively thwarted the Commission from investigating Kalshi's suitability," the notice said. 

"As a result, the Commission also lacks awareness of whether, or to what extent, Kalshi adheres to the various safeguards and guardrails that Ohio law requires."

During March 2026, a federal judge in Ohio had previously ruled in favor of state regulators when Kalshi filed a lawsuit against the Ohio Casino Control Commission for attempting to prohibit its operations.

While the operator’s legal ongoings in Ohio have been less than favorable up to this point, Kalshi was granted reprieve in Arizona following intervention from the Commodity Futures Trading Commission (CFTC). 

An Arizona federal judge approved a restraining order request from the CFTC which also concluded the temporary suspension of Kalshi’s case – granting protection from state prosecution for the operator. 

 

 

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