Ohio Calls Kalshi 'a Pig': DeWine Will Enforce Gambling Law After Court Win

Ohio Governor Mike DeWine does not think Kalshi deserves a complicated legal analysis. "They are gambling," he said after the Sixth Circuit handed his state a court win last week. "And just because they call themselves something doesn't mean they're not gambling. If it's a pig, it's a pig."

The U.S. Court of Appeals for the Sixth Circuit ruled September 25 that Kalshi's sports event contracts do not qualify as "swaps" under the Commodity Exchange Act. A three-judge panel found sports outcomes lack "inherent economic significance" and any financial effect on sponsors or broadcasters is "too attenuated, indirect, and speculative" to count. States can regulate them. Ohio intends to.

DeWine framed the company's federal preemption argument as a workaround, not a legal principle. He told StateNews.org: "These so-called prediction markets, which are really gambling, nothing more than that, they're just trying to get around the law."

A $5 Million Fine Is Already Waiting

Ohio is not starting from zero. The Ohio Casino Control Commission fined Kalshi $5 million in April 2026 for operating unlicensed sports gaming. Licensed sports betting operators in Ohio pay a 20% state tax on revenue. Kalshi paid neither.

The company filed a federal lawsuit against state officials in October 2025, hoping to establish that the CFTC, not Columbus, held jurisdiction over its sports contracts. The Sixth Circuit answered that question and the answer was no.

Kalshi Is 1 for 3 in Appeals Courts

Kalshi's scorecard in federal appellate courts is now 1 for 3: it won before the Third Circuit in New Jersey, lost to the Sixth Circuit covering Ohio and Tennessee, and lost to the Ninth Circuit covering Nevada. Tennessee had briefly sided with Kalshi at the district level, granting a preliminary injunction, but the Sixth Circuit vacated that protection in the same September 25 decision.

New Jersey's Attorney General petitioned the U.S. Supreme Court on September 2 to review the Third Circuit's pro-Kalshi decision. A Fourth Circuit case in Maryland is still pending. The circuit split is real, and it is almost certainly headed for Supreme Court review.

The spokesperson is correct that the situation is a patchwork. Three circuits, three different answers. Kalshi operating legally in New Jersey but facing a $5 million fine in Ohio for the exact same product is not a stable legal environment for anyone.

The Gap in the "Swap" Argument

The company's core legal theory is that its sports contracts are "swaps" under the Commodity Exchange Act, which would put the CFTC in charge and shut states out. Two circuits have now rejected that theory. The Sixth Circuit panel was precise: "Congress designed that category around instruments used to manage financial, commercial, or economic risk." Sports outcomes do not carry that economic function.

Kalshi does have CFTC approval as a designated contract market, giving it legitimate federal standing for non-sports contracts, including elections, economic indicators, and weather. The approval is real. The problem is that it does not automatically extend to every contract the company wants to offer.

DeWine is not the only governor asking questions. More than a dozen states have taken enforcement action or filed lawsuits over Kalshi's sports contracts, including Connecticut and Michigan. Ohio is now the one with appellate validation.

The Supreme Court is probably the only institution that can make the patchwork into a single rule. Until then, Kalshi's business in Ohio is exposed. The governor has a pig. He says he knows what to do with it.

Ad Watch News is an independent commentary site. No affiliation with Kalshi, the Ohio Casino Control Commission, or any party named here. This piece draws on published sources listed below.

Sources & further reading

• StateNews.org: Kalshi is illegal gambling and Ohio will enforce state law following ruling, says DeWine (Oct 2, 2026)
• CrowdFund Insider: Prediction Markets Platform Kalshi Loses Sixth Circuit Fight Over Ohio And Tennessee Gambling Rules (Sept 25, 2026)
• The Block: Kalshi loses appeal over Ohio and Tennessee sports betting laws, widening circuit split (Sept 26, 2026)
• WOSU Public Media: Kalshi is illegal gambling and Ohio will enforce state law following ruling, DeWine says (Oct 2, 2026)
• Ohio Capital Journal: After court ruling, Ohio Gov. Mike DeWine to hold Kalshi accountable for operating illegally (Sept 30, 2026)
• Wikimedia Commons: Gov. Mike DeWine portrait, CC BY-SA 4.0 (Vivien McClain Photography, 2018)