Baltimore officials have sued Kalshi and Polymarket, alleging that both operators offer sports-related contracts to city residents without licenses required under Maryland law. The lawsuits also accuse the companies of misleading consumers about their regulatory status.
Mayor Brandon Scott and the Baltimore City Council filed the complaints in Baltimore City Circuit Court. The city argues that contracts covering game outcomes, point spreads, totals and player statistics resemble products offered by licensed sportsbooks.
“These companies are running sportsbooks without licenses and betting that a new label will put them above the law,” Scott said according to WBAL-TV. “It won’t. Baltimore will not let multibillion-dollar companies put profits over people and harm our communities through illegal gambling.”
Baltimore Targets Prediction Market Practices
The city says Kalshi and Polymarket offer sports wagering products without authorization from the Maryland Lottery and Gaming Control Agency. Baltimore argues that licensed sportsbooks face regulatory requirements that the prediction market operators avoid.
Officials also raised concerns about consumers vulnerable to gambling-related harm. The complaints argue that claims suggesting the platforms operate under appropriate regulation could mislead customers.
City Solicitor Ebony M. Thompson said, “Kalshi and Polymarket cannot circumvent Baltimore’s consumer protections by repackaging gambling as something else or claiming federal regulation puts them beyond the reach of our laws.”
Adam Levitt, founding partner of DiCello Levitt, said, “Allowing prediction-market companies to evade gambling laws would set a dangerous precedent far beyond Baltimore.”
Kalshi Lawsuit Names Additional Companies
Baltimore’s Kalshi case includes Kalshi Inc. and KalshiEX LLC, plus Robinhood Markets, Robinhood Derivatives, Webull Corporation, Webull Financial and Coinbase Financial Markets.
The city alleges users can access Kalshi sports contracts through prediction market sections on those platforms. It also challenges products called “combos,” saying they operate similarly to sportsbook parlays.
Kalshi rejected the allegations and cited its federal regulatory position.
“This is nothing more than an effort to relitigate the same case that’s currently under appeal before the Fourth Circuit. It’s clearly political theater by Mayor Scott. Kalshi is not violating any consumer protection laws; it’s operating lawfully under the exclusive jurisdiction of its federal regulator. We look forward to defending these claims in court.”
Polymarket Dispute Adds To Debate
Baltimore’s Polymarket complaint names QCX LLC, Blockratize Inc. and QC Tech LLC. The city alleges that Polymarket’s structure can blur the boundary between prediction markets and sports wagering. It claims the company operates an internal market-making function that can take positions against customers.
A Polymarket representative said, “City-specific action runs counter to the (Commodity Futures Trading Commission’s) established framework for regulating prediction markets. As courts have recognized, prediction markets on CFTC-registered exchanges are governed by federal law, not a patchwork of state and local rules.”
The lawsuits follow wider regulatory disputes. Maryland regulator John Martin previously warned licensed gaming companies that prediction market participation could put their licenses at risk. Courts in New York, Wisconsin and Utah have also rejected requests seeking to restrict enforcement actions.
Baltimore is seeking civil penalties, restitution, disgorgement and injunctions preventing the companies from offering what the city considers unauthorized sports betting products.
Source:
“Baltimore Escalates Legal Fight Against Prediction Markets”, news.worldcasinodirectory.com, August 14, 2026
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