Baltimore Mayor Brandon M. Scott and the City Council have filed separate lawsuits against prediction market operators Kalshi and Polymarket in the Circuit Court for Baltimore City. The legal actions allege that both platforms conduct unlicensed sports wagering and mislead residents regarding the regulatory status of their services.
Platform Offerings and Regulatory Classification
The complaints state that the companies allow users to wager on game outcomes, point spreads, scoring totals and individual player statistics. City officials argue that labeling these offerings as event contracts or prediction market trades does not change their classification as sports bets under Maryland law. The platforms are accused of presenting gambling products in a manner that suggests full regulatory compliance while maintaining consumer access.Legal Remedies and Involved Companies
City Solicitor Ebony M. Thompson noted that the operators cannot bypass local consumer protection regulations by altering product terminology or citing federal oversight. The municipal cases seek civil penalties, court orders to halt the activity, consumer restitution and the return of profits earned from the disputed services. The filing against Kalshi additionally names Robinhood, Webull and Coinbase, while the Polymarket complaint includes QCX, Blockratize and QC Tech.The Maryland Lottery and Gaming Control Commission previously issued cease-and-desist notices to Kalshi, Robinhood and Crypto.com in April 2025, directing them to suspend sports event contracts within the state. Kalshi subsequently filed a separate action in the US District Court for the District of Maryland, asserting that its agreements are governed exclusively by the federal Commodity Exchange Act rather than state wagering statutes.