Ohio bill would tax prediction markets 20%, force sportsbook-style licensing
Ohio Sen. Bill DeMora filed Senate Bill 430 on Monday to create a state licensing and regulation framework for prediction market platforms that offer sporting-event contracts. The bill would amend Ohio state code to classify event-contract trading as sports betting rather than financial or commodities instruments, requiring operators to obtain gaming licenses and pay a 20% tax. The filing comes as Ohio's attorney general and gaming regulators are already considering penalties for prediction market operators active in the state. If passed, the measure would make offering prediction market trading a clearer violation of Ohio law for unlicensed platforms. The Ohio proposal parallels advancing prediction market legislation in Iowa, marking a broader state-level trend to bring these markets under traditional gambling oversight.
Forces prediction market operators like Kalshi and Polymarket to either secure Ohio gaming licenses and absorb a 20% tax or exit the state entirely, as Ohio's attorney general already weighs enforcement action against platforms currently offering contracts there.