Google has updated its ad policy to prohibit ads for prediction markets from appearing in Ohio. The move comes as major operators such as Kalshi and Polymarket ramp up advertising and promotions through social media.
Google announced the update last week, stating that the ban is effective from June 2. The company already prohibits prediction market ads from appearing in Nevada.
In other states, the tech company allows platforms holding Commodity Futures Trading Commission (CFTC) licenses to promote their businesses.
Other States To Follow?
Google also prohibits prediction markets that promote content it categorizes as online gambling.
It defines this as “Markets concerning games of chance or lotteries, or any activity legally defined as gambling within relevant jurisdictions and not permitted as a regulated prediction market under local law.”
This definition could lead to restrictions across several states that have declared prediction markets illegal gambling.
Lawmakers in Minnesota recently passed a bill that bans prediction markets. However, this is being challenged by the CFTC, Kalshi, and Polymarket, which have all sued the state.
Ohio’s Battle With Prediction Markets
Ohio Governor Mike DeWine has been outspoken about his distaste for gambling advertising. He said his biggest regret in office was legalizing sports betting because of the rampant marketing by betting companies.
The state has also taken a strong stance against prediction markets, which, along with sportsbooks, allow residents to wager on esports and other sporting events.
The state was one of the first to send a cease-and-desist letter to Kalshi back in April last year. Kalshi refused to withdraw from the state and sued the Ohio Casino Control Commission (OCCC) in July last year.
A judge denied the company’s motion for a preliminary injunction in March, but Kalshi has appealed the decision to the Sixth Circuit.
In April, the OCCC threatened to fine the operator $5 million as it declared it was running an illegal gambling operation. It has agreed to hold off on any further action while Kalshi’s appeal is pending.
The state reiterated its belief that Kalshi is offering unlicensed sports betting in a brief filed with the Sixth Circuit this week.
In the Third Circuit, Kalshi received a favorable ruling, but New Jersey has stated its intention to appeal to the Supreme Court.
New Mexico Joins Legal Action
The legal challenges to sports prediction markets continue to spread across the country. States have largely succeeded when filing lawsuits in state courts.
New Mexico became the seventh state to file a lawsuit against Kalshi on Friday. Like in Ohio, the state similarly alleges that the company is offering unlicensed sports betting.
Several tribes in New Mexico also sued Kalshi last month, claiming the company is offering sports-event contracts on Indian lands in violation of tribal gaming compacts.
Kalshi continues to insist that its markets on esports and other events are legitimate financial contracts with economic consequences, and distinct from sports betting.
