Baltimore city leaders file suit against Kalshi and Polymarket

Baltimore's mayor and city council filed suit in federal court against Kalshi and Polymarket, alleging the platforms operate illegal gambling operations that circumvent Maryland state law and direct revenue away from state-licensed venues.

The complaint names both platforms and argues that event contracts on political and sports outcomes constitute gambling under Maryland statute, regardless of the federal regulatory framework Kalshi has used to defend its operations in other jurisdictions.

The filing arrives as Kalshi contests a Washington state injunction and pursues preemption arguments in multiple federal circuits. Baltimore's theory runs in a different direction: rather than engaging the CFTC jurisdiction question directly, the city grounds its claim in consumer protection and local licensing law, a framing that federal preemption arguments may not reach as cleanly.

Polymarket's inclusion is significant. The platform has no CFTC designation and has already faced court-backed enforcement in Denmark and France. A successful municipal claim against Polymarket would not require resolving the federal question at all.