Baltimore has opened a front against prediction markets, accusing Kalshi and Polymarket of operating sports betting without Maryland licenses. The city filed lawsuits Thursday, arguing that sports contracts resemble wagers offered by sportsbooks. Baltimore targeted Coinbase, Robinhood, and Webull, widening the dispute across apps distributing those contracts.
Kalshi Faces Broader Claims
The lawsuit names Kalshi Inc., KalshiEX LLC, Robinhood Markets, Robinhood Derivatives, Webull Corporation, Webull Financial, and Coinbase Financial Markets. Baltimore alleges those companies enabled customers to access sports contracts through prediction sections within their apps.
Moreover, the city argues that Kalshi and Robinhood combos resemble parlays. Consequently, Baltimore says the platforms cannot avoid consumer safeguards or state taxes by labeling products event contracts.
Polymarket Also Draws Scrutiny
Baltimore’s Polymarket complaint focuses on sports contracts covering game outcomes, point spreads, and player performances. However, the city also challenges the platforms’ ability to operate outside Maryland’s licensing framework.
Additionally, Kalshi points to its federal regulatory status and plans to defend itself. Significantly, the lawsuits could test how courts distinguish event contracts from conventional sports wagering.
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