Baltimore Sues Prediction Market Platforms Over Alleged Illegal Gambling

Baltimore, MD, August 13, 2026 —

The city of Baltimore has initiated legal action against two prominent prediction market platforms, Kalshi and Polymarket. The lawsuits, filed recently, accuse the companies of facilitating illegal sports betting and operating unlawful prediction markets within the city’s limits.

Baltimore officials allege that Kalshi and Polymarket are enabling residents to engage in wagering on future events, which the city contends constitutes illegal gambling under its ordinances. The core of the city’s argument centers on the nature of the markets offered by these platforms, which allow users to trade contracts based on the outcome of various events, including sports.

The lawsuit against Kalshi, a registered exchange, focuses on its offerings that allegedly allow users to bet on sports outcomes. Similarly, the legal action against Polymarket, which operates as a decentralized prediction market, asserts that it provides a venue for illegal gambling activities.

Details regarding specific events or the exact nature of the contracts traded by Baltimore residents were not immediately available. The legal filings aim to compel the platforms to cease operations within the city and potentially face penalties for alleged violations of local gambling laws.

Neither Kalshi nor Polymarket immediately responded to requests for comment regarding the lawsuits. The legal proceedings are expected to examine the classification of prediction markets and their compliance with existing gambling regulations in Baltimore.

The city’s move highlights a growing scrutiny of prediction markets and their potential intersection with gambling laws. As these platforms gain popularity, regulatory bodies and municipalities are increasingly evaluating their operations and their impact on local statutes.

Story summarized from the original created by Google News on news.google.com, see more information here.