Baltimore Sues Kalshi and Polymarket for Illegal Sports Betting Operations

City files federal suit accusing prediction markets of unlicensed sports betting via event contracts, seeking penalties and consumer compensation.

Woofun AI reports that Baltimore Mayor Brandon M. Scott and the city council initiated a federal lawsuit on August 13 against prediction market platforms Kalshi and Polymarket. The complaint alleges that both entities facilitate illegal sports betting within the city by allowing residents to wager on game outcomes, point spreads, total points, and player statistics without holding required Maryland licenses. The city contends that the platforms utilize 'event contracts' to circumvent regulatory oversight, tax obligations, and consumer protection standards. Baltimore is pursuing civil penalties, injunctive relief, and financial compensation for affected consumers. This legal action follows previous litigation involving Kalshi by the New York Attorney General and multiple ongoing disputes facing Polymarket.