Baltimore Sues Prediction Market Operators Over Alleged Illegal Sports Betting
Baltimore has filed lawsuits against prediction market operators Kalshi and Polymarket, alleging they violated consumer protection laws by operating illegal, unlicensed sports-betting platforms and misleading consumers about the legality of their services. The city seeks civil penalties and restitution for…
Baltimore, MD, August 13, 2026 —
BALTIMORE, MD – The city of Baltimore has initiated legal action against two prominent prediction market operators, Kalshi and Polymarket. The lawsuits, filed recently, accuse the companies of violating consumer protection laws by allegedly operating illegal, unlicensed sports-betting platforms.
According to the city’s legal filings, Baltimore contends that Kalshi and Polymarket have misled consumers regarding the legality of their services. The lawsuits aim to hold the companies accountable for these alleged violations.
The specific claims made by Baltimore include that the prediction markets function as unlicensed sports betting operations, thereby contravening established consumer protection regulations. The city is seeking to impose civil penalties on both Kalshi and Polymarket.
In addition to financial penalties, Baltimore is also requesting restitution for consumers who may have been affected by the operations of these platforms. The exact amount of restitution sought, as well as the specific civil penalties, were not immediately available.
The lawsuits mark a significant development in the regulatory scrutiny of prediction markets, particularly concerning their overlap with gambling and financial trading regulations. The city’s action highlights concerns about consumer safety and fair business practices within this emerging market space.
Story summarized from the original created by Renee Anderson on www.cbsnews.com, see more information here.
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