Baltimore Sues Prediction Markets Over Unlicensed Sports Betting

The city of Baltimore and its mayor, Brandon Scott, filed lawsuits on August 13, 2026, against prediction market platforms Kalshi and Polymarket, alleging the companies are operating illegal, unlicensed sports betting platforms in violation of Maryland law. The legal action, announced by the mayor's office, contends that the platforms' sports event contracts are functionally identical to unlawful wagers and that the companies have misled users about the regulatory status of their products.

The lawsuits target the core business model of the rapidly growing prediction market industry, which allows users to trade on the outcomes of real-world events, including sports games. Baltimore's complaint argues that these contracts are indistinguishable from sports wagers but operate outside the licensing, taxation, and consumer protection frameworks required of legal sportsbooks in the state. "These companies are running sportsbooks without licenses and betting that a new label will put them above the law," Mayor Scott stated. "It won't. Baltimore will not let multibillion-dollar companies put profits over people and harm our communities through illegal gambling."