On October 7, 2025, Kalshi, a platform specializing in prediction market trading, filed a lawsuit against the Ohio Casino Control Commission (OCCC) and Ohio attorney general (AG), alleging that their regulatory actions overstep state authority. The complaint seeks to block enforcement of a cease-and-desist order that was issued by the OCCC in the spring, which accused Kalshi of “operating online sports gaming” and warned Ohio licensees that partnering with Kalshi could jeopardize their licensing status and integrity.

Kalshi’s platform allows users to trade contracts based on the outcomes of real-world events, including sports, which it argues are “economic instruments” regulated by the Commodity Futures Trading Commission (CFTC) at the federal level. The OCCC, however, expressed concerns that Kalshi’s event contracts resemble gambling rather than traditional financial trading, and asserted that state law gives Ohio the right to oversee and restrict such activities.

The core legal issue is whether Ohio regulators can suppress Kalshi’s operations by threatening legal consequences for licensed sportsbooks and vendors that collaborate with the platform, or whether federal law preempts state regulation in this context. Kalshi contends that its activities are legally sanctioned under federal law and that the OCCC’s actions infringe upon federal jurisdiction, causing harm to its business relationships and reputation.

Why It Matters

This dispute is emblematic of a broader national struggle between prediction-market platforms and state gaming regulators. This lawsuit is the latest in a series of lawsuits involving Kalshi in several states, including:

  • Nevada: Kalshi sued the Nevada Gaming Control Board after receiving a cease-and-desist order. Kalshi secured a preliminary injunction in April 2025, but the case is still being litigated in district court.
  • New Jersey: Kalshi obtained a preliminary injunction against New Jersey regulators, but the state immediately appealed. The case is now pending in the U.S. Court of Appeals for the Third Circuit.
  • Maryland: Kalshi sued Maryland’s Lottery and Gaming Control Agency after a cease-and-desist order. Kalshi failed to obtain a preliminary injunction, and the case is ongoing. Kalshi has appealed the adverse ruling.
  • Massachusetts: Massachusetts AG sued Kalshi in state court, and the case has been complicated by a separate federal lawsuit filed by Robinhood.
  • Ohio: Kalshi has filed a federal lawsuit against Ohio officials after receiving a cease-and-desist order from the Ohio Casino Control Commission. Kalshi is seeking an injunction to prevent enforcement of state law, arguing its contracts are federally regulated. The case is pending in federal court.
  • Tribal governments in California and Wisconsin have initiated lawsuits against Kalshi in federal court, seeking declaratory and injunctive relief regarding the legality of Kalshi’s contracts.
  • Additionally, Illinois, Montana, Arizona, South Carolina, Kentucky, and Georgia have issued cease-and-desist letters or have lawsuits pending against Kalshi. The exact status varies, but most are in early litigation or pre-litigation phases.

With some courts ruling in favor of Kalshi and others against, the core issues raised in these cases ultimately may need to be decided by the U.S. Supreme Court.

Troutman Pepper Locke State Attorneys General Team’s Related Blog Posts:

Troutman Pepper Locke State Attorneys General Team

Ashley Taylor – Co-leader and Firm Vice Chair
Ashley is co-leader of the firm’s nationally ranked State Attorneys General practice, vice chair of the firm, and a partner in its Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He helps his clients navigate the complexities involved with multistate attorneys general investigations and enforcement actions, federal agency actions, and accompanying litigation.
Clay Friedman – Co-leader
Clay co-leads the firm’s State Attorneys General practice and is nationally ranked by Chambers USA for AG Government Relations and in Best Lawyers for Advertising Law. He has dedicated his entire career to state attorney general and federal work, serving for nearly a decade in a senior role and more than 25+ years in private practice. Clay focuses his practice on helping industry-leading companies mitigate the risks associated with state and federal regulatory investigations and associated litigation.
Chris Carlson
Chris advises clients on regulatory, civil, and criminal investigations and litigation. With a background as an assistant attorney general, he provides practical guidance to clients with matters involving state attorneys general and federal regulatory agencies.
Lauren Fincher
Lauren has vast experience handling state attorneys general investigations, navigating complex regulatory compliance matters, and providing strategic counsel in enforcement actions across various industries. She helps clients manage high-stakes regulatory matters and guides them through complex legal landscapes.
Stephen Piepgrass
Stephen leads the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, representing clients in single and multistate enforcement actions, including inquiries and investigations, as well as litigation involving state attorneys general and other state and federal governmental enforcement bodies. He has significant experience handling actions with federal agencies, including the CFPB and FTC, as well as single plaintiff and class action litigation for clients in highly regulated sectors such as financial services, health care, pharmaceutical, and education.
Michael Yaghi
Mike handles high-profile state attorneys general, FTC, and CFPB investigations by advising clients through these complex government inquiries. He assists clients through the entire life cycle of investigations, from regulatory enforcement through formal litigation.
Samuel E. “Gene” Fishel
Gene is a former regulator with two decades of experience who has overseen state privacy and cybersecurity regulation enforcement, led national, multistate attorneys general privacy investigations, and prosecuted computer crimes at the state and federal levels. He has served at the forefront of state attorney general and federal enforcement, and utilizes this experience to proficiently represent client interests.
Jeff Johnson
Jeff helps clients navigate complex regulatory and litigation challenges with local, state, and federal authorities. His clients benefit from his decade of broad litigation experience, understanding of emerging state and federal regulatory issues, and strong relationships with attorneys general across the U.S. In addition to handling cases from trial through state or federal appeals, Jeff serves as amicus counsel in advancing legal rules to support his clients’ vital interests.
Jay Myers
Jay assists clients in heavily regulated industries, including health care, energy, insurance, emerging industries, and data privacy. He provides both regulatory legal advice and government relations strategies. Jay’s past and current clients include Fortune 10 companies, startups, nonprofits, industry associations, and advocacy groups. Recognizing that state government matters are often complex and multifaceted, he utilizes regulatory guidance, government advocacy, or both in tandem to deliver tailored solutions for each client’s unique needs.
Zoe Schloss
Zoe represents clients in litigation and government investigations. As former deputy attorney general for the Delaware Department of Justice, she is an experienced litigator who understands the enforcement priorities that impact her clients. Zoe works with individuals and corporate entities in highly regulated industries, including financial services, health care, and energy.
Jessica Birdsong
 Jessica is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. She received her J.D. from the University of Richmond School of Law, magna cum laude, where she served as associate articles editor of the Journal of Law & Technology.
Blake R. Christopher
Blake collaborates with clients on matters related to government contracting, investigations, and disputes. His senior-level government experience generates valuable insights and strategies for clients across a variety of industries.
Nick Gouverneur
Nick is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. He received his J.D. from the University of Illinois College of Law, where he served as a member of the Journal of Law, Technology & Policy.
Troy Homesley
Troy is an accomplished litigator who has represented and defended clients across a wide range of complex, high-stakes disputes at both the trial and appellate levels. He has represented technology companies, business executives, law firms, investment funds, high-ranking federal officials, international non-profits, and asylum seekers. Troy draws on his broad litigation experience to advise clients before litigation arises, while claims are pending or threatened, and leading up to and through trial and appeals.
Namrata Kang
Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer protection laws relating to consumer financial services and marketing and advertising. Nam’s experience transcends multiple industries, including financial services, telecommunications, media, and sports betting.
Michael Lafleur
Michael is an associate in the firm’s Regulatory Investigations, Strategy, and Enforcement Practice Group. Based out of the firm’s Boston office, Mike has deep experience in litigation, investigations, and other regulatory matters involving state-level regulators and state attorneys general.
Philip Nickerson
Philip represents clients in sectors such as financial, tech, real estate, and energy in a range of litigation matters. He is experienced in matters involving trade secrets, government investigations, commercial contracts, construction and product defect.
Lane Page
Lane specializes in federal and state regulatory investigations and complex civil litigation. He focuses on representing financial institutions and other businesses, with a particular emphasis on consumer protection and fair lending issues.
Dascher Pasco
Dascher is an attorney within the Regulatory Investigations, Strategy, and Enforcement practice, based in the Richmond office. She joined our firm after working in personal injury and medical malpractice for a Virginia trial law firm. Dascher brings varied legal experience to the firm with strong litigation and regulatory strategy capabilities.
Kyara Rivera Rivera
Kyara is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. She received her J.D. from the University of Richmond School of Law, cum laude, where she served as publications and online editor of the Public Interest Law Review.
Timothy Shyu
Timothy is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group.
Trey Smith
Trey focuses his practice on representing and advising regulated utilities before state public utility commissions. He routinely helps clients obtain certificates of public convenience and necessity for transmission infrastructure. In this role, Trey works with his clients’ subject-matter experts to manage administrative proceedings, including by preparing initial filings; responding to discovery requests; drafting rebuttal testimony; and litigating any disputed issues.
Daniel Waltz
Dan helps clients navigate all aspects highly regulated relationships between industry participants and federal, state and local governments. Whether engaging with regulators, negotiating transactions or representing clients in the courtroom, he delivers solutions that help his clients achieve their strategic goals.
Cole White
 Cole is a member of the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) group. He has a decade of experience working in the attorney general community, having joined the firm from the Wyoming Office of the Attorney General, where he was assistant attorney general.
Stephanie Kozol
Stephanie is Troutman Pepper Locke’s senior government relations manager in the state attorneys general department.