Baltimore sues Kalshi and Polymarket operators

• Baltimore sued Kalshi and Polymarket operators over sports-related prediction markets.
• The lawsuit argues the contracts function like unlicensed sports betting products.
• The case could affect how prediction markets are regulated in the United States.

Baltimore filed a lawsuit against Kalshi and operators linked to Polymarket, claiming some sports-related prediction markets violate local gambling laws.

The lawsuit argues that contracts tied to sports outcomes operate like sports betting products and should be regulated accordingly.

City officials said the legal action aims to stop what they describe as unlicensed gambling activity.

The complaint seeks court orders that could restrict the offering of certain sports-related prediction contracts within Baltimore.

The case adds to growing legal pressure on prediction market platforms operating across multiple US jurisdictions.

Kalshi has argued that its event contracts are regulated under federal commodities law, while Polymarket has faced regulatory scrutiny in several markets.

The lawsuit highlights the increasing conflict between local gambling laws and the expanding prediction market industry.