Baltimore Sues Kalshi and Polymarket Over Alleged Illegal Gambling Operations
The city of Baltimore has filed lawsuits against Kalshi and Polymarket, accusing them of operating illegal gambling platforms and misleading customers.
Baltimore, MD, August 13, 2026 —
The city of Baltimore has initiated legal action against two financial platforms, Kalshi and Polymarket, alleging that they are operating illegal gambling operations and have been misleading their customers. The lawsuits were filed by the city, seeking to halt the platforms’ activities within its jurisdiction.
According to the city’s filings, both Kalshi and Polymarket are accused of facilitating what it characterizes as unlawful gambling through their platforms. The specific details of the allegations, including the exact nature of the alleged illegal activities and the timeline of these operations, were not fully detailed in the initial reports. The contractor’s name involved in setting up these platforms was not provided.
Furthermore, the lawsuits claim that these companies have engaged in deceptive practices, misleading their users about the nature of the services offered and the associated risks. The city is seeking to have these platforms cease operations, citing violations of state and local gambling laws. The outcome of these legal challenges and any potential fines or penalties have not yet been determined.
The core of the city’s argument centers on the classification of the financial instruments or contracts offered by Kalshi and Polymarket. Baltimore contends that these instruments function as wagers on future events, which constitutes gambling, rather than legitimate financial trading. The lawsuits aim to clarify the regulatory status of such platforms and enforce existing gambling statutes.
The current permit status for Kalshi and Polymarket to operate within Baltimore was not provided. Similarly, the outcome of any specific inspections related to these platforms or details regarding code violations were not made public. The city’s legal action represents a significant move to regulate or potentially shut down platforms that it believes are operating outside the bounds of the law.
The fine amounts, if any, that the city is seeking or that could be imposed as a result of these lawsuits were not specified in the information available. The trajectory of this legal dispute is expected to unfold in the coming months as the courts review the city’s claims and the platforms’ responses.
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