Baltimore Mayor Brandon M. Scott and the City Council filed separate lawsuits Thursday against prediction market operators Kalshi and Polymarket, arguing that both run unlicensed sportsbooks in breach of the city's Consumer Protection Ordinance. The complaints went to the Circuit Court for Baltimore City.
The city's case is that the two platforms take bets on match winners, spreads, totals and player props — categories normally open only to licensed bookmakers. Kalshi and Polymarket describe those trades as event contracts, priced peer-to-peer rather than at bookmaker odds. Baltimore does not accept the distinction.
The Kalshi complaint also names Robinhood, Webull and Coinbase, which offer sports event contracts through the Kalshi platform. In the Polymarket case the additional defendants are QCX, Blockratize and QC Tech.
Baltimore says the platforms give a false impression of a legal, regulated product and make gambling easier to reach for young adults and people showing signs of gambling harm. 'These companies are running a bookmaking business without licences and are betting that a new label puts them above the law,' Scott said. The Baltimore City Department of Law is handling the cases with the firm DiCello Levitt. The city is seeking civil penalties, an injunction, consumer restitution and disgorgement of profits.
Background
In April 2025 the Maryland Lottery and Gaming Control Commission sent Kalshi, Robinhood and Crypto.com letters demanding they stop selling sports event contracts in the state. Kalshi answered with a suit in the US District Court for the District of Maryland citing the Commodity Exchange Act. In August 2025 Judge Adam Abelson refused a preliminary injunction. In December the commission's secretary John Martin warned licensed operators that a move into prediction markets puts their licences at risk. Regulators have won similar cases in New York, Wisconsin and Utah.
Under Maryland law an operator applies through the eLicensing system, registers with the Department of Assessments and Taxation, clears the Sports Wagering Application Review Commission and pays 20% of taxable revenue to local authorities.
