Baltimore sues Kalshi, Polymarket over sports betting

Baltimore sues Kalshi and Polymarket for unlicensed sports betting, referencing Coinbase, Robinhood, and Webull. The city seeks sanctions and a ban, fueling a wider regulatory debate.

Baltimore has filed lawsuits against Kalshi and Polymarket, alleging that both platforms offered unlicensed sports betting and misled consumers about the legality of their products. The city claims these platforms provide contracts on game winners, point spreads, totals, and player performance—features it argues are equivalent to traditional sports bets and should be regulated as gambling under Maryland law. The lawsuits also mention Coinbase, Robinhood, and Webull as platforms that distribute Kalshi contracts. Baltimore is seeking sanctions, restitution, and a court order to prevent these companies from offering unauthorized sports betting to city residents. Kalshi and Polymarket argue that their event contracts are federally regulated financial products, highlighting a broader regulatory conflict between federal oversight and state gambling laws. This legal action is part of over 20 similar cases nationwide, with the outcome potentially shaping how crypto-linked platforms operate in U.S. prediction markets.