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Google has recently made a significant change to its ad policy by banning ads for prediction markets in Ohio. This decision comes at a time when leading operators like Kalshi and Polymarket are increasing their advertising efforts on social media platforms.
The announcement of this update was made by Google last week, with the ban set to be enforced starting June 2. Notably, Google already prohibits prediction market ads in Nevada.
In states where prediction market platforms hold licenses from the Commodity Futures Trading Commission (CFTC), Google allows them to promote their services.
Possibility of Expansion to Other States
Google’s policy also prohibits prediction markets that promote content categorized as online gambling.
According to Google, this includes “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 might lead to restrictions in states where prediction markets are considered illegal gambling.
Minnesota lawmakers recently passed a bill outlawing prediction markets. However, this decision is facing opposition from the CFTC, Kalshi, and Polymarket, all of which have filed lawsuits against the state.
Challenges in Ohio
Ohio Governor Mike DeWine has been vocal about his disapproval of gambling-related advertisements. He expressed regret over legalizing sports betting due to the excessive marketing by betting companies.
Ohio has also taken a firm stance against prediction markets, which, like sportsbooks, enable residents to bet on esports and other sports events.
Last April, Ohio was among the first states to send a cease-and-desist letter to Kalshi. Despite the state’s actions, Kalshi refused to withdraw and instead sued the Ohio Casino Control Commission (OCCC) in July of the same year.
Although a judge denied Kalshi’s motion for a preliminary injunction in March, the company has appealed this decision to the Sixth Circuit.
Earlier in April, the OCCC threatened to impose a $5 million fine on Kalshi for running what it deemed an illegal gambling operation. However, the OCCC agreed to postpone any further action pending Kalshi’s appeal.
In a recent filing with the Sixth Circuit, the state reiterated its belief that Kalshi is engaged in unlicensed sports betting.
While Kalshi received a favorable ruling in the Third Circuit, New Jersey intends to appeal the decision to the Supreme Court.
Legal Issues in New Mexico
The legal battles surrounding sports prediction markets are spreading nationwide. States have generally found success when filing lawsuits in state courts.
Last Friday, New Mexico became the seventh state to file a lawsuit against Kalshi, alleging that the company is offering unlicensed sports betting, similar to the accusations in Ohio.
Furthermore, several tribes in New Mexico have also sued Kalshi, claiming that the company is providing sports-event contracts on Indian lands in violation of tribal gaming compacts.
Kalshi maintains that its markets related to esports and other events are legitimate financial contracts with economic implications, distinct from traditional sports betting.