According to Cointelegraph, Baltimore and Mayor Brendan Scott filed lawsuits against Kalshi and Polymarket on Thursday, alleging the companies violated local gambling laws and engaged in deceptive business practices. The city claims both firms operated illegal, unlicensed sports betting platforms and misled users about the legal status of their products. The lawsuit against Kalshi names Robinhood, Webull, and Coinbase as partners of the prediction market platforms, accusing them of promoting sports contracts as legally purchasable in Maryland.
The companies and the U.S. Commodity Futures Trading Commission (CFTC) argue that prediction market event contracts fall under federal regulatory oversight as swaps. Polymarket stated that prediction markets operating on CFTC-registered exchanges are governed by federal law and should not be subject to state and local rules.
