Baltimore has filed separate lawsuits against Kalshi and Polymarket, arguing that both prediction market platforms offer unlicensed sports wagering while presenting their products as federally regulated event contracts. The city wants penalties, restitution and court orders stopping the challenged activity.
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The central dispute goes beyond whether sports contracts resemble sportsbook bets. Baltimore argues that Kalshi and Polymarket cannot rely on federal commodities regulation to avoid Maryland gambling requirements or local consumer protection rules.
Mayor Brandon M. Scott said:
“These companies are running sportsbooks without licenses and betting that a new label will put them above the law. It won’t. Baltimore will not let multibillion-dollar companies put profits over people and harm our communities through illegal gambling.”
City filings point to markets covering game results, point spreads, totals and player performance. Baltimore says those products function like sports wagers even though customers trade contracts against other market participants rather than betting directly against a sportsbook.
Kalshi and Polymarket take the opposite regulatory position. The CFTC treats qualifying prediction markets as event contract exchanges, and the federal regulator has repeatedly argued in 2026 that it holds exclusive jurisdiction over CFTC regulated prediction markets. The CFTC even sued Wisconsin in April after that state targeted Kalshi, Polymarket and several other platforms.
That federal versus state conflict now sits at the center of prediction market litigation around the US.
Baltimore is also pursuing a consumer protection argument. The city alleges that presenting the platforms as legal and regulated can mislead residents about whether Maryland gambling safeguards apply, particularly for younger customers and people at risk of gambling harm.
City Solicitor Ebony M. Thompson said:
“Kalshi and Polymarket cannot circumvent Baltimore’s consumer protections by repackaging gambling as something else or claiming federal regulation puts them beyond the reach of our laws. The City will continue to use its consumer protection authority to stop deceptive and unlawful conduct and hold companies accountable when they put our residents at risk.”
Maryland licensed sports wagering operators face a different framework. Mobile sportsbooks operate under state approval and currently contribute 20% of taxable proceeds. Maryland sports wagering generated $132.3 million in state contributions during fiscal 2026, including more than $99.7 million for public education programs.
Baltimore wants injunctive relief, civil penalties, restitution, disgorgement and other remedies from Kalshi and Polymarket. Neither company had publicly responded to the Baltimore complaints when the actions were announced.