Ohio Bill Would Ban Public Officials from Prediction Market Trading
Proposed Ohio legislation would ban state officials from trading on platforms like Kalshi after 35,000 residents wagered in one year.
COLUMBUS, OHIO — A newly introduced bill in the Ohio Legislature would prohibit public officials and their staff from participating in prediction markets like Kalshi and Polymarket, due to concerns about potential insider trading.
State Rep. Sean Brennan, D-Parma, introduced the legislation after more than 35,000 Ohioans placed wagers on the Kalshi platform in one year, according to state data.
“The prediction market environment that we’re hearing about these days, it just doesn’t meet the smell test, right?” Brennan said.
Penalties and Violations
Under the proposed legislation, convicted politicians could face up to 180 days in jail and a $10,000 fine per violation. They would also be required to pay back any profits made from prediction market trading.
The bill also prohibits officials from sharing confidential information with others for betting purposes. “This is all so much in the dark that nobody is really protected, except the people that own (the platforms) and the people that have the insider information, and that’s not fair,” Brennan said.
Who Would Be Affected
The ban would apply to all statewide executives, House and Senate lawmakers, and Ohio Supreme Court justices, along with their staff members. Staff would be prohibited from even maintaining accounts on prediction market platforms.
The restrictions extend to officers and employees of legislative agencies and the commissions on casino control, lottery, and racing. The inspector general’s entire office, ethics commission members, and employees from the departments of commerce, insurance, and administrative services would also be banned from participating.
Brennan indicated that additional agencies may be added to the list, including potentially the Department of Health.
Bipartisan Concerns
Republican U.S. Senator Bernie Moreno expressed support for the measure, stating that politicians using insider information for profit crosses ethical lines. “There shouldn’t be a side hustle of using the information you get here to monetize,” Moreno said.
The push for regulation comes amid national scrutiny of politicians using prediction markets. Former Virginia Democrat Mark Moran drew criticism for betting on his own entry into a U.S. Senate race.
However, state Sen. Bill DeMora, D-Columbus, an avid gambler who supports preventing insider trading, believes the bill goes too far in its scope.
Legal gambling activities, including sports betting, would remain permissible for public officials and staff under the proposed legislation.
