Updated
Updated · Conduit Street · Aug 18
Baltimore City Sues Kalshi, Polymarket Over Sports Bets That Evade Maryland Licensing Rules
Updated
Updated · Conduit Street · Aug 18

Baltimore City Sues Kalshi, Polymarket Over Sports Bets That Evade Maryland Licensing Rules

3 articles · Updated · Conduit Street · Aug 18

Summary

  • Baltimore City filed separate lawsuits last week against Kalshi, Polymarket and affiliated companies in circuit court, seeking to halt what it says are illegal sports-betting operations.
  • The city argues the platforms’ “event contracts” on game winners, point spreads, totals and player statistics are sports wagers under Maryland law, even though the companies market them as prediction trades.
  • Baltimore says the firms bypass Maryland’s licensing, taxation and sportsbook safeguards—including advertising, data-security and consumer-protection rules—while misleading users about the legality and regulatory status of the products.
  • The suits seek civil penalties, consumer restitution, disgorgement of profits and other relief, adding to a broader fight over whether federally regulated prediction markets can offer products that resemble state-regulated gambling.

Insights

With the CFTC tightening rules, will federal courts allow local cities to shut down multibillion-dollar sports prediction platforms?
Are prediction markets revolutionary financial tools, or just a clever disguise for unregulated sports betting threatening state tax revenues?