Baltimore Sues Kalshi and Polymarket Over Sports Betting Claims

Baltimore and Mayor Brandon Scott have filed lawsuits against Kalshi and Polymarket, accusing both prediction market companies of running unlicensed sports betting operations under the guise of event contracts. The mayor’s office said the platforms misled users about the legal status of their products and operated as illegal sportsbooks under state gambling laws.

Mayor Calls Out Company Practices

“These companies are running sportsbooks without licenses and betting that a new label will put them above the law,” Scott said, adding that Baltimore would not allow large companies to prioritize profit over the community’s wellbeing through unlawful gambling activity.

Robinhood, Webull and Coinbase Named as Partners

The complaint against Kalshi also names Robinhood, Webull and Coinbase, accusing them of misleading customers by marketing sports-related contracts as legally tradable products in Maryland.

Federal vs State Authority Dispute

The lawsuits add to an ongoing clash between state and federal regulators. The CFTC, led by Chair Michael Selig, maintains that these event contracts qualify as swaps under its jurisdiction, while Baltimore and other states argue otherwise. A Polymarket spokesperson pushed back, stating that prediction markets on CFTC-registered exchanges fall under federal law rather than local regulations. Legal experts expect the dispute could eventually reach the Supreme Court.