Key Highlights
- On June 2, 2026, Google modified its advertising guidelines to prohibit prediction market advertisements in Ohio, establishing it as the second state subject to this restriction following Nevada
- While the Ohio Casino Control Commission didn’t initiate the prohibition, the agency publicly praised Google’s decision
- Kalshi faces 18 separate legal proceedings across federal and state jurisdictions regarding claims of CFTC federal regulatory authority
- Legal representatives in Ohio are vigorously contesting Kalshi’s legal challenge against a cease-and-desist directive
- Minnesota made history as the first state to prohibit prediction markets through legislative action in May 2026
Without fanfare, Google modified its advertising guidelines on June 2, 2026, implementing a prohibition on prediction market advertisements within Ohio. This adjustment places Ohio alongside Nevada on the limited but expanding roster of American states where these promotional materials face restrictions.
Google’s rationale centered on “the inherent complexities, speculative nature, and unique regulatory classification” characterizing prediction market contracts. The company requires advertisers authorized to promote these services in other jurisdictions to possess all relevant financial, commodity, or gaming regulatory permits.
The Ohio Casino Control Commission clarified it hadn’t requested this policy modification. Andromeda Morrison, serving as the OCCC’s interim executive director, released a statement expressing that the commission “applauds Google for its efforts to ensure that marketing targeting Ohioans fully complies with Ohio law.”
Google initially opened prediction market advertising opportunities throughout most American states in January 2026, with Nevada standing as the singular exception during that period. The June addition of Ohio demonstrates an evolving approach to the platform’s state-specific enforcement strategy.
Ongoing Legal Battles Surrounding Prediction Markets
Companies operating prediction markets, such as Kalshi, maintain their platforms function as exchanges under federal Commodity Futures Trading Commission regulation. State regulatory bodies nationwide contest this interpretation and have pursued legal remedies.
Kalshi currently participates in 18 separate legal proceedings spanning federal and state courts. The CFTC has aligned with Kalshi’s position, initiating legal action against seven states attempting to prohibit prediction market contracts involving sports events.
In April 2025, Ohio issued cease-and-desist notices to Kalshi, Robinhood, and Crypto.com. Kalshi responded by filing a lawsuit against Ohio’s regulatory authorities. A federal judge rejected Kalshi’s motion seeking preliminary injunctive relief.
Just two days following Google’s advertising prohibition, Ohio’s legal counsel submitted their response to Kalshi’s litigation. They contended that categorizing sports event contracts as “swaps” — a derivative instrument typically employed for risk hedging — would render certain provisions of the Commodity Exchange Act without practical effect.
Ohio’s attorneys characterize sports event contracts as unlawful gambling activities under state statutes, rather than financial instruments falling under federal regulatory purview.
Ohio’s Expanding Gambling-Related Challenges
Ohio’s resistance to prediction markets emerges while the state grapples with consequences from legalized sports wagering. Governor Mike DeWine, who supported sports betting legalization in 2023, has subsequently acknowledged the decision as an error.
DeWine has voiced concerns regarding sports betting’s societal consequences in Ohio, despite the industry maintaining legal operational status throughout the state.
Concurrently, the CFTC filed suit against Rhode Island in late May 2026, seeking to prevent enforcement of that state’s prohibition on Polymarket, an alternative prediction market platform. Minnesota enacted prediction market restrictions through legislation in May, establishing itself as the first state to accomplish this through the legislative process.
The regulatory and legal landscape for prediction markets continues evolving, with federal and state agencies maintaining conflicting positions regarding jurisdictional authority over these platforms.
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