Baltimore has launched legal action against prediction market platforms Kalshi and Polymarket, accusing them of operating unlicensed sports betting services in the city. The lawsuits, filed by Mayor Brandon M. Scott and the Baltimore City Council on August 13, allege that the companies violate the city’s Consumer Protection Ordinance by offering bets on game outcomes and player statistics without required licenses.
The complaints claim that Kalshi and Polymarket mislead consumers about their legal compliance, evading oversight, taxation, and consumer safeguards applicable to licensed operators. Baltimore seeks civil penalties, injunctive relief, and the recovery of profits from the firms. The city’s action follows a similar lawsuit by New York State Attorney General Letitia James against Kalshi in July, as well as a separate case in Washington, D.C., involving Polymarket.
Kalshi faces additional scrutiny after the US Commodity Futures Trading Commission (CFTC) issued an emergency order requiring it to continue operating in New York, while Polymarket lost banking services from JPMorgan Chase late last year. A Washington, D.C. lawsuit also alleges deceptive advertising practices by Polymarket on social media.
The effectiveness of legal measures against the firms remains uncertain, with reports suggesting political influencers may have promoted Polymarket without disclosing paid partnerships, according to investigations by the Wall Street Journal. Neither Kalshi nor Polymarket has publicly responded to the latest claims.
Written by Steven Cook
Regulation Desk
