Baltimore Sues Kalshi, Polymarket Over Alleged Gambling Law Violations

The City of Baltimore and Mayor Brendan Scott have initiated lawsuits against prediction market platforms Kalshi and Polymarket. The lawsuits allege that these companies are operating in violation of local gambling laws.

What Happened

The City of Baltimore, along with Mayor Brendan Scott, has filed lawsuits against prediction market companies Kalshi and Polymarket (Cointelegraph, The Daily Record). These legal actions stem from allegations that both firms are operating in contravention of local gambling statutes (Cointelegraph, Yahoo News). According to the Baltimore mayor’s office, a notice regarding these lawsuits was issued on Thursday (Cointelegraph).

The lawsuits contend that Kalshi and Polymarket are engaged in illegal gambling activities and are misleading customers (Yahoo News). This development represents another legal challenge to claims made by federal regulators regarding the authority over prediction markets (Cointelegraph).

Key Details

• The City of Baltimore and Mayor Brendan Scott are the plaintiffs (Cointelegraph).
• Defendants are prediction market platforms Kalshi and Polymarket (Cointelegraph, The Daily Record).
• The core allegation is that the companies violated local gambling laws (Cointelegraph, Yahoo News).
• The lawsuits reportedly argue against the Commodity Futures Trading Commission’s (CFTC) authority over prediction market companies (Cointelegraph).
• The lawsuits also allege that the companies are misleading customers (Yahoo News).

Why It Matters

These lawsuits filed by the City of Baltimore against Kalshi and Polymarket highlight ongoing regulatory friction concerning prediction markets within regulated jurisdictions (Cointelegraph). The legal actions challenge the operational framework of these platforms under existing gambling laws, potentially influencing how such markets are regulated and perceived at a municipal level (Cointelegraph, The Daily Record). The contention regarding the CFTC’s authority, reportedly central to Baltimore’s argument, underscores a broader debate about federal versus local oversight in emerging financial and betting markets (Cointelegraph).

Originally reported by Cointelegraph·Published 13 Aug 2026, 21:08