Baltimore sues Kalshi and Polymarket over unlicensed sports betting

Baltimore City filed a lawsuit against Kalshi and Polymarket on Wednesday, alleging the two prediction market platforms operated illegal sports betting without state licensure. The complaint, filed in Baltimore City Circuit Court, argues the platforms accepted wagers from Maryland residents on sporting outcomes in violation of state gambling law.

The suit adds a third municipal front to Kalshi's existing legal exposure. Federal proceedings in Connecticut and Nevada have already tested whether CFTC designation shields the company from state enforcement. Baltimore's filing does not raise federal preemption — it grounds its claim entirely in Maryland consumer protection and gaming statutes, a framing that sidesteps the jurisdictional arguments Kalshi has used elsewhere.

Polymarket's inclusion is notable. The platform has operated under CFTC no-action guidance and rebuilt its US presence through its parlay beta. A Maryland court finding that guidance insufficient to block state enforcement would create a problem neither platform's current legal strategy was built to absorb.