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Baltimore sues Kalshi and Polymarket over sports prediction markets
The city’s complaint names Robinhood, Webull and Coinbase as partners tied to Kalshi, and argues the firms misrepresented the legality of the products in Maryland.
Baltimore, Maryland has filed lawsuits targeting prediction market platforms Kalshi and Polymarket, alleging violations of local gambling rules and deceptive trade practices. In a notice issued by the mayor’s office, officials said the companies operated illegal, unlicensed sports betting platforms and misled users about the legality and regulatory status of their products.
The legal action centers on disputes over how the platforms characterize their “event contracts,” with the city arguing the trades function as unlawful wagers under state law. Baltimore mayor Brendan Scott said the firms are effectively running sportsbooks without licenses and betting that relabeling would place them above the law.
According to Cointelegraph, the complaint against Kalshi also included Robinhood, Webull and Coinbase as partners. The city accused those partners of marketing sports contracts as something that can lawfully be purchased and traded in Maryland.
The lawsuits add to a broader clash between US state and federal authorities over how prediction markets should be regulated. Cointelegraph notes that the CFTC, under Chair Michael Selig, and some market participants have argued event contracts fall under the agency’s swaps framework, while Baltimore and other state-level authorities dispute that position.