TOLEDO, OH (WOWO) Ohio gaming regulators are seeking a multimillion-dollar penalty against a prediction market company accused of operating unlicensed sports gaming within the state.

The Ohio Casino Control Commission says it intends to impose a 5-million-dollar civil fine against KalshiEX LLC for offering sports-related contracts without proper state authorization.

Regulators say the company continued operating in Ohio despite prior concerns over compliance with state gaming laws.

The platform allows users to trade contracts based on real-world outcomes, including sports events, and operates under federal oversight through the Commodity Futures Trading Commission.

Ohio regulators say the activity falls under state sports gaming rules that require licensing and enforcement oversight.

The commission says the enforcement action is intended to maintain compliance with Ohio gaming regulations.

A spokesperson for Kalshi says the company is reviewing the action and points to ongoing legal disputes involving its operating model.

The company maintains that it functions as a federally regulated exchange rather than a traditional sports betting operator.

The case remains under administrative review, and regulators say further comment will be limited while proceedings continue.