Baltimore Sues Prediction Markets Kalshi and Polymarket for Unlawful Gambling

The city of Baltimore filed a pair of lawsuits this week against Kalshi and Polymarket, alleging that the platforms’ sports event contracts allow residents to engage in unlawful gambling under Maryland law. City officials claim that the companies are violating the city’s Consumer Protection Ordinance.

Kalshi and Polymarket offer sports betting without the necessary licensing required under state law. This allows the company to avoid oversight, taxation, responsible gambling requirements, and consumer protections, according to the city. Both the state and city lawsuits also argue that the companies feature many of the same bets found at traditional sportsbooks.

In other legal developments, a judge in Utah ruled against Kalshi, noting that the state’s anti-gambling laws apply to prediction markets. A court in Washington state ordered Kalshi to block event contracts on sports, elections, politics, entertainment, culture, technology, science, and other markets with geofencing by Sept. 2. The state of New York also sued Kalshi this week, alleging the company engaged in illegal gambling. Additionally, the Trump administration is set to host prediction market executives next Wednesday at the White House.