Baltimore’s legal battle with prediction market operators Kalshi and Polymarket has escalated as the city filed lawsuits claiming the companies are conducting unlicensed sports betting. The suits, filed by Mayor Brandon M. Scott and the Baltimore City Council, allege that the platforms mislead consumers regarding the legality of their services, in violation of the city’s Consumer Protection Ordinance.
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Claims of Misleading Consumers
The city argues that by branding sports wagers as “event contracts” or prediction-market trades, Kalshi and Polymarket attempt to sidestep Maryland’s sports betting laws. And according to the lawsuit, these products still function as traditional bets—such as those on game outcomes, point spreads, and player stats—offered by licensed sportsbooks. Baltimore’s legal team, led by City Solicitor Ebony M. Thompson, demands that these platforms face civil penalties and other legal repercussions. “They can’t dodge consumer protection laws simply by rebranding what is essentially gambling,” Thompson stated.
Inclusion of Major Financial Platforms
Interestingly, the Kalshi case also pulls in financial heavyweights like Robinhood, Webull, and Coinbase, implicating them in offering similar sports event contracts. The Polymarket lawsuit names QCX, Blockratize, and QC Tech as additional defendants. This move signals a broader crackdown on companies that skirt local gambling regulations by operating under the cover of federal law.
Regulatory Context and Prior Actions
This isn’t the first time Kalshi has faced regulatory scrutiny. The Maryland Lottery and Gaming Control Commission already issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com in April 2025 concerning sports event contracts. In response, Kalshi had sued in federal court, asserting that its operations are governed exclusively by the federal Commodity Exchange Act, not Maryland’s gambling statutes. Industry analysts have noted that such conflicts between state and federal regulation are becoming more frequent as digital and decentralized platforms evolve.
Seeking Legal Remedies
Baltimore’s lawsuits aim to secure a range of remedies, including civil penalties, injunctive relief, consumer restitution, and the disgorgement of what the city describes as ill-gotten profits. The legal proceedings underscore the ongoing tension in the industry—between new betting models and traditional regulatory frameworks. The outcome of this legal battle could ripple across other jurisdictions wrestling with similar regulatory challenges. And the timeline for the resolution of these cases is not clear. But the parties involved are expected to present their initial arguments later this year. Whether Kalshi and Polymarket can withstand Baltimore’s legal pressure remains an open question.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
