City of Baltimore Files Lawsuit Against Polymarket and Kalshi Over Alleged Unlicensed Sports Betting

According to court documents, the lawsuit contends that Polymarket and Kalshi allow residents to stake cryptocurrency and fiat balances on athletic outcomes, political races, and pop culture events under the guise of financial derivative trading, bypassing state licensing fees, consumer protection guardrails, and age verification standards enforced on traditional sportsbooks.

The legal filing comes amidst broader regulatory scrutiny across major U.S. metropolitan areas. City officials highlighted that event-contract platforms have rapidly expanded their consumer footprint without obtaining state gaming credentials or submitting to local wagering tax oversight.

"This lawsuit signals a turning point for prediction markets operating across U.S. municipalities," said Sophia Chen, Regulatory Editor at CryptoCasinoMedia. "City and state regulators are no longer treating event contracts as distinct financial products—they are actively enforcing sports betting laws across all prediction interfaces."