The city of Baltimore has filed lawsuits against prediction market platforms Kalshi and Polymarket, accusing them of operating illegal sports betting without required licenses. Mayor Brandon M. Scott and the Baltimore City Council filed separate cases on August 13, alleging violations of the city’s Consumer Protection Ordinance. Officials claim the companies allow residents to bet on game winners, spreads, and player stats under the guise of “event contracts.” Baltimore argues this bypasses oversight and taxation imposed on licensed sportsbooks. The city seeks civil penalties and restitution. Both companies face additional legal battles, including a lawsuit from New York’s attorney general and regulatory actions from the Commodity Futures Trading Commission.
Baltimore has taken legal action against prediction market operators Kalshi and Polymarket, accusing both companies of offering illegal sports betting in the city.
Mayor Brandon M. Scott and the Baltimore City Council filed separate lawsuits on August 13 in the Circuit Court. The cases allege violations of Baltimore’s Consumer Protection Ordinance and accuse the companies of misleading consumers about whether their products are legal and properly regulated.
The complaints claimed that Kalshi and Polymarket allow Baltimore residents to bet on game winners, point spreads, point totals, and player statistics. The companies describe these products as “event contracts” or prediction-market trades.
According to the officials, the label does not change what the products are. Neither platform, according to the lawsuits, has the licenses required to offer sports betting in Maryland.
The city said that this lets them compete with regulated sportsbooks while avoiding oversight, taxation, and consumer protections. Baltimore alleged that Kalshi and Polymarket market their platforms in ways that can create a false or misleading impression that the offerings are legal and regulated.
The city added that this can make gambling more accessible and expose vulnerable consumers to financial harm. Baltimore is seeking civil penalties, injunctive relief, restitution for affected consumers, disgorgement of alleged ill-gotten profits, and other relief allowed under law.
The two companies are already dealing with several other legal and regulatory disputes. Kalshi recently faced a lawsuit from New York State Attorney General Letitia James seeking to shut down its operations in the state.
The US Commodity Futures Trading Commission then used its emergency authority to require Kalshi to continue operating in New York after the company sought federal help. It also faced a lawsuit from flight-tracking company FlightAware over flight-related prediction markets, though that case was withdrawn a day later.
Polymarket has faced separate problems as well. JPMorgan Chase stopped providing banking services to it late last year. A separate consumer protection lawsuit has also been filed against it in Washington, D.C.
The National Association of Consumer Advocates alleges that the company ran “flagrantly deceptive” social media advertising campaigns. The complaint refers to reports of political influencers praising Polymarket’s accuracy without disclosing paid deals.
