Ohio appeals court rules against Kalshi as rehearing bid filed

Kalshi's petition for rehearing before the Ohio Court of Appeals follows a ruling that handed the state a clear win in the ongoing legal challenge to Ohio's prediction market restrictions. The appellate court upheld the state's position, declining to strike down the regulatory framework Kalshi had contested.

The rehearing request keeps the Ohio case alive for now, but the procedural posture is unfavorable. An appellate court that has already ruled in the state's favor faces a high bar for reversal on rehearing, and Ohio joins Nevada, Kentucky, and a growing list of jurisdictions where state-level resistance to CFTC-licensed prediction market operators has produced concrete legal setbacks.

Kalshi is simultaneously contesting regulatory hostility across multiple fronts. The Ohio loss adds to a pattern in which federal preemption arguments that succeeded at the district level have not translated cleanly into appellate victories at the state tier.