Baltimore Sues Kalshi and Polymarket for Allegedly Violating Consumer Protection Laws
The city says the companies ran sportsbooks without licenses and misled users, seeking civil penalties and restitution for affected consumers.
- On Thursday, Baltimore Mayor Brandon Scott and the Baltimore City Council filed lawsuits against Kalshi and Polymarket, accusing the companies of violating the Consumer Protection Ordinance by operating unlicensed sports-betting platforms.
- The lawsuits allege companies market services as "event contracts" to bypass regulations, allowing them to compete with licensed sportsbooks while avoiding taxation, oversight, and consumer protections.
- Data from the Pew Research Center shows combined monthly global trading volume on Kalshi and Polymarket soared from less than $5 billion in September 2025 to about $24 billion by April 2026, outpacing the $14 billion average bet on legal sites.
- Polymarket argued federal law governs prediction markets on CFTC-registered exchanges, not local rules, while Kalshi dismissed the litigation as "political theater."
- This case joins broader legal battles including a similar suit announced last month by New York Attorney General Letitia James and an appeal before the Fourth Circuit regarding Kalshi's sports contracts in Maryland.
18 Articles
18 Articles
Maryland Officials Sue Prediction Market Platforms Over Unlicensed Sports Betting
Baltimore city leaders have filed lawsuits accusing Kalshi and Polymarket of operating unlicensed sports betting platforms that skirt state regulations. The post Maryland Officials Sue Prediction Market Platforms Over Unlicensed Sports Betting appeared first on The Daily Hodl.
Kalshi, Polymarket sued by Baltimore over sports event contracts
Baltimore has sued Kalshi and Polymarket over alleged unlicensed sports betting, with its case against Kalshi also naming Coinbase, Robinhood and Webull over their role in distributing sports event contracts. According to complaints filed Thursday by Mayor Brandon Scott and…
Baltimore City sues Kalshi, Polymarket over alleged illegal sports betting
With online sports betting sites proliferating, Baltimore City is taking legal action to rein in two big players, accused of cheating. Event contracts, prediction market trades – those are the descriptions Baltimore City claims, covering what is open sports betting operations by Kalshi and Polymarket. Both have virtual betting pages, including for Saturday night’s Ravens/Eagles preseason game. The city’s lawsuit claims these are illegal, unlicen…
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