Baltimore sues Kalshi and Polymarket over illegal sports betting
The city is seeking civil penalties, arguing that the prediction market operators are offering unlicensed sports wagering while misleading consumers about the legality of their products.
US.- Baltimore Mayor Brandon M. Scott and the Baltimore City Council have filed separate lawsuits against Kalshi and Polymarket. They allege that the companies violate the city’s Consumer Protection Ordinance by offering illegal, unlicensed sports betting and misrepresenting the regulatory status of their platforms.
The complaints, filed in the Circuit Court for Baltimore City, claim that the operators allow residents to bet on game winners, point spreads, totals, player statistics and other propositions typically offered by licensed sportsbooks. The city argues that calling these products “event contracts” or prediction-market trades does not change their nature as sports bets under Maryland law.
The lawsuits allege that Kalshi and Polymarket market their services in a way that gives consumers a false impression that their products are lawful and properly regulated, while making gambling easily accessible. City Solicitor Ebony M. Thompson said the companies cannot avoid Baltimore’s consumer protection rules by presenting gambling products differently or relying on federal regulatory claims.
The city is seeking civil penalties, injunctive relief, restitution for affected consumers, disgorgement of alleged ill-gotten profits and other remedies available under the Consumer Protection Ordinance.
The Kalshi lawsuit also names Robinhood, Webull and Coinbase, which offer sports event contracts through the platform. The Polymarket case names QCX, Blockratize and QC Tech.
The Maryland Lottery and Gaming Control Commission previously sent cease-and-desist letters to Kalshi, Robinhood and Crypto.com in April 2025, ordering them to stop offering sports event contracts in the state. The company subsequently sued in the US District Court for the District of Maryland, arguing that its contracts fall exclusively under the federal Commodity Exchange Act and are not subject to Maryland sports wagering laws.