Illustration by Kalshi, Tuesday, April 7, 2026 (Photo: Anne-Marie Caruso/New Jersey Monitor, States Newsroom.)
The newly introduced bill would prohibit Ohio public officials and their employees from “trading” in forecast markets.
Prediction markets are exploding in popularity, with the state reporting that in one year, more than 35,000 Ohioans placed bets on the Kalshi platform.
“The forecast market environment we’re currently hearing about just doesn’t pass the smell test, does it?” said state Rep. Sean Brennan, D-Parma.
Across the country, politicians are being called out for using these apps for their own gain, such as then-Virginia Democrat Mark Moran, who made a bet that he would enter the U.S. Senate race.
Brennan and Republican U.S. Sen. Bernie Moreno of Ohio say this type of behavior is unacceptable.
“Using the information you get here to make money should not result in any additional action,” Moreno said.
Brennan introduced a bill that would prohibit government officials and their employees from not only making predictions, but also sharing any confidential information with anyone else for the purpose of placing bets.
If convicted, the politician could face 180 days in prison and a $10,000 fine for each violation. They would also have to pay back all the profit they made.
“This is all happening in the dark, that no one is really protected except the (platform) owners and people with confidential information, and that’s unfair,” Brennan said.
The Democrat wants all state employees to comply, but the list currently includes all statewide executives, House and Senate lawmakers and Ohio Supreme Court justices. All company employees are not even allowed to have accounts on prediction market platforms.
The list includes an officer or employee of any legislative agency or casino, lottery or racing control commission.
The inspector general and the entire office, as well as people from the ethics committee, would also not be able to participate. Members of trade, insurance or administrative services departments are also subject to the ban.
More agencies may be added, Brennan said, after I mentioned the Department of Health.
All legal gambling, such as sports betting, would still be allowed for public officials and staff.
While state Sen. Bill DeMora, R-Columbus, supports preventing insider trading by politicians, the state’s avid gambler said the bill goes beyond the law.
“If I knew what the weather was going to be like three days in advance, I would be the richest man in America — that’s true,” DeMora said. “But I don’t have that kind of confidential information.”
In these markets, there are thousands of options to choose from, such as who will win a reality show, how many cases of measles there will be, and the release date of video games.
DeMora does not utilize prediction markets because he believes they are illegal in Ohio, a point with which Attorney General Dave Yost agrees.
“It’s gambling, no matter how they try to dress it up, and that means it falls under state jurisdiction,” Yost said. “States have a long-standing right and obligation to protect their citizens from the dangers of gambling, whether it involves the prediction market or the casino.”
Kalshi is already in trouble in Ohio. In April, the Ohio Casino Control Commission sent Kalshi a notice of “intent to impose” a $5 million penalty, arguing that the company had ignored regulations including the state’s 20% sports betting tax.
The company argued that the federal Commodity Exchange Act prevented enforcement of Ohio’s law. Kalshi allows users to “trade,” it says on its website. In legal proceedings, the company claimed that it entered into individual “contracts” that were more akin to stock trading than betting.
A federal judge disagreed in March, ruling they must follow Ohio’s sports betting rules. DeMora just introduced a bill to the tax prediction markets.
“I’m not one of those hypocrites who will try to regulate something I use illegally,” he said.
DeMora said public officials should not be banned from all types of forecasting, only those that relate to their work.
“You can’t bet on everything that the government would be able to regulate or supervise,” he said.
Kalshi already has laws in place prohibiting the utilize of confidential political information, including on lawmakers, staffers, candidates and certain members of the media. We asked for comment on this legislation but did not receive a response.
Polymarket, another huge platform, also places restrictions on candidates, politicians and staffers from trading on relevant topics. Their team declined to comment on the bill.
“To protect the people and the integrity of our government, there is nothing wrong with some guardrails,” Brennan said.
Although other states across the country also want to ban politicians from forecasting markets, there is little movement in Congress to prevent members from trading stocks.
Follow WEWS statehouse reporter Morgan Trau X AND Facebook.
This article was originally published on News5Cleveland.com and are published in the Ohio Capital Journal under a content sharing agreement. Unlike other OCJ articles, it is not available for free republication on other news outlets because it is owned by WEWS in Cleveland.
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