Baltimore sues Kalshi and Polymarket for operating unlicensed sports betting, joining regulatory challenges from New York and Washington, D.C.
Regulation & Gov ·
Prediction market platforms Kalshi and Polymarket are facing legal action from Baltimore authorities, who allege the companies operate unlicensed sports betting operations in violation of Maryland law. The city's lawsuits contend that both platforms accept wagers on outcomes including game winners, point spreads, totals, and individual player statistics without holding the required state licenses, thereby sidestepping regulatory frameworks that govern licensed competitors and protect consumers.
These challenges compound existing legal pressures on the two operators. New York's Attorney General has pursued separate litigation, and Washington, D.C. authorities have filed consumer protection claims centered on allegations of misleading marketing regarding the legal standing of their offerings.
The disputes hinge on whether prediction markets—which allow users to trade contracts tied to event outcomes—fall within the regulatory scope of sports betting statutes designed for traditional sportsbooks. Both platforms have not yet publicly detailed their defense strategies or responses to the Baltimore suits, leaving unresolved whether they will challenge the jurisdiction of these claims or pursue legislative remedies.