City of Baltimore goes after prediction markets for sports betting
Baltimore and Mayor Brendan Scott filed lawsuits against Kalshi and Polymarket, accusing them of operating illegal, unlicensed sports-betting platforms and misleading users about the legality of their products in Maryland. The city argues that the companies’ event contracts are effectively unlawful wagers under state gambling laws, not legitimate financial instruments. Baltimore’s complaint against Kalshi also names partners Robinhood, Webull, and Coinbase, alleging deceptive marketing of sports contracts as lawfully tradable in Maryland. The dispute adds to broader conflict between state and federal regulators over prediction markets. The CFTC and the companies say event contracts are federally regulated swaps on CFTC-registered exchanges, while Baltimore and other state authorities reject that view.
