Baltimore Sues Kalshi and Polymarket Over Sports Event Contracts
United States.- 18 August 2026 | www.zonadeazar.com The City of Baltimore has filed separate lawsuits against Kalshi and Polymarket, alleging that both platforms offer products that effectively function as unlicensed sports betting under Maryland’s regulatory framework.
The complaints were filed in the Circuit Court for Baltimore City and claim that the companies are violating the city’s Consumer Protection Ordinance (CPO) through allegedly unfair, abusive and deceptive trade practices.
Sports Contracts at the Centre of the Dispute
The lawsuits focus on contracts linked to sporting events.
Baltimore says the platforms allow customers to trade products covering:
- Game winners.
- Point spreads.
- Point totals.
- Player propositions.
The city argues that these are effectively categories traditionally associated with regulated sportsbooks.
Kalshi and Polymarket, however, describe the transactions as event contracts traded between market participants rather than wagers offered at house-set odds.
Baltimore Challenges the Distinction
City officials reject that distinction and argue that changing the structure or terminology does not alter the underlying nature of the activity.
The complaints also allege that consumers may be given a misleading impression about the legal and regulatory status of the products being offered.
Additional Companies Named
The lawsuit involving Kalshi also names:
- Robinhood.
- Webull.
- Coinbase.
All three provide access to sports event contracts through Kalshi’s platform.
The Polymarket complaint also names QCX, Blockratize and QC Tech.
Statements
Baltimore Mayor Brandon M. Scott said the companies are, in the city’s view, operating sportsbooks without licences and relying on different terminology in an attempt to place themselves outside gambling laws.
Scott said Baltimore would not allow large companies to prioritise profits over community protection from illegal gambling.
City Solicitor Ebony M. Thompson argued that Kalshi and Polymarket cannot avoid Baltimore’s consumer-protection laws by repackaging gambling products or claiming that federal regulation places them beyond the reach of local authorities.
Consumer Protection Focus
Beyond licensing, the lawsuits also focus on how these products are marketed and made available to consumers.
Baltimore argues that easy access to the platforms could create particular risks for vulnerable populations, including young adults and individuals displaying signs of problem gambling.
What Baltimore Is Seeking
The city is requesting several forms of relief, including:
- Civil penalties.
- Injunctive relief.
- Restitution for affected consumers.
- Disgorgement of profits.
- Other remedies available under the Consumer Protection Ordinance.
Baltimore is being represented by the City Department of Law together with law firm DiCello Levitt.
Maryland Licensing Framework
Businesses seeking to offer sports betting in Maryland must complete a formal licensing process.
Requirements include applying through Maryland Lottery and Gaming’s licensing system, registering with the Department of Assessments and Taxation, passing background checks and paying applicable fees.
Licensed operators are also required to contribute 20% of taxable sports betting revenue to local government.
Previous Prediction Market Disputes
Maryland’s conflict with sports prediction markets predates the latest Baltimore lawsuits.
In April 2025, the Maryland Lottery and Gaming Control Commission issued cease-and-desist letters to Kalshi, Robinhood and Crypto.com instructing them to stop offering sports event contracts in the state.
Kalshi subsequently filed a federal lawsuit arguing that its contracts are governed exclusively by the Commodity Exchange Act and are therefore exempt from state sports wagering laws.
In August 2025, a federal judge denied Kalshi’s request for a preliminary injunction, finding that the company had not demonstrated a sufficient likelihood of success on its federal pre-emption argument.
Next Steps or Impact
Baltimore’s lawsuits add another significant legal front for sports prediction markets in the United States.
The cases could have wider implications for whether state and local authorities can enforce gambling and consumer-protection rules against platforms that argue they operate under federal derivatives regulation.
At the centre of the dispute remains a fundamental question: whether sports event contracts should be treated primarily as federally regulated financial instruments or as gambling products also subject to state gaming laws.
Editó: @fonta
