- Baltimore sued Kalshi and Polymarket in city court.
- Kalshi partners Coinbase, Robinhood and Webull were also named.
- The city seeks penalties, restitution and a block on the contracts.
The Baltimore lawsuit targets Kalshi and Polymarket over sports-event contracts that the city says amount to illegal sports betting. Mayor Brandon Scott and the Baltimore City Council filed the cases on Thursday in Baltimore City Circuit Court. The city says both platforms offered sports wagers without Maryland licenses and outside the state rules that govern sportsbooks.
Baltimore lawsuit says Kalshi acts like a sportsbook
The Baltimore lawsuit against Kalshi names Kalshi Inc. and KalshiEX LLC. It also names Coinbase Financial Markets, Robinhood Markets, Robinhood Derivatives, Webull Corporation and Webull Financial. The complaint says these firms distributed Kalshi sports contracts through their apps.
City lawyers say Kalshi offered game-winner markets, point spread-style trades, player props, and combo products that work like parlays. The Baltimore lawsuit says those contracts mirror standard sportsbook products. It also says the platform bypassed Maryland taxes, licensing rules and consumer protections.
Kalshi said it operates as a federally regulated prediction market. A company spokesperson said Kalshi would defend the claims in court.
Baltimore lawsuit targets Polymarket sports contracts too
The Baltimore lawsuit against Polymarket names QCX LLC, Blockratize Inc. and QC Tech LLC. The complaint alleges that Polymarket offered sports wagering to Baltimore users while presenting the trades as prediction-market products. The city says the platform created a misleading impression that its sports offerings were lawful and regulated.
The filing also says Polymarket used an internal market-making team that could take positions against users. The Baltimore lawsuit says that setup can blur the line between a peer-to-peer market and a house-run sportsbook. Baltimore wants the court to award maximum statutory penalties, customer restitution and disgorgement of proceeds.
The city also wants an order blocking both platforms from offering unauthorized sports betting to Baltimore residents. The Baltimore lawsuit arrives while Maryland and Kalshi are still fighting over whether federally regulated prediction markets can offer sports contracts under state law.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
