Baltimore sues Kalshi and Polymarket over alleged illegal sports betting

Baltimore Mayor Brandon M. Scott and the Baltimore City Council have filed separate lawsuits against Kalshi and Polymarket, saying the platforms are offering unlicensed sports wagering while dressing it up as “event contracts.” For PSPs and other payments players, the point is simple: if a product looks and behaves like sports betting, local regulators may treat it that way, whatever the label says on the wrapper.

1. The complaints were filed in the Circuit Court for Baltimore City and allege violations of the city’s Consumer Protection Ordinance. Baltimore says the companies are allowing residents to bet on game winners, point spreads, totals, player statistics and other propositions typically offered by licensed sportsbooks.
2. The city argues that calling these products “event contracts” or prediction-market trades does not change their nature under Maryland law. City Solicitor Ebony M. Thompson said the companies cannot avoid Baltimore’s consumer protection rules by presenting gambling products differently or by relying on federal regulatory claims.
3. Baltimore is seeking civil penalties, injunctive relief, restitution for affected consumers, disgorgement of alleged ill-gotten profits and other remedies available under the ordinance. In practice, that means the city is not just asking for a stop order; it is also trying to recover money already made through the products.
4. The Kalshi lawsuit also names Robinhood, Webull and Coinbase, which offer sports event contracts through the platform. The Polymarket case names QCX, Blockratize and QC Tech.
5. This is not the first regulatory warning shot. The Maryland Lottery and Gaming Control Commission sent cease-and-desist letters to Kalshi, Robinhood and Crypto.com in April 2025, ordering them to stop offering sports event contracts in the state. Kalshi then sued in the US District Court for the District of Maryland, arguing that its contracts fall exclusively under the federal Commodity Exchange Act and are not subject to Maryland sports wagering laws.