Baltimore Takes Legal Action Against Sports Prediction Markets

cryptonews.ruОпубліковано о 2026-08-13Востаннє оновлено о 2026-08-13

Анотація

Baltimore and its mayor, Brendan Scott, have filed lawsuits against prediction market platforms Kalshi and Polymarket, alleging they operate as illegal, unlicensed sports betting platforms in violation of local gambling laws. The lawsuits contend that the platforms' event contracts are unlawful wagers under state law, misleading users about their legality. Baltimore specifically named Robinhood, Webull, and Coinbase as partners in the Kalshi suit, accusing all companies of unfair practices by advertising these products as legal in Maryland. The case highlights a growing conflict between state and federal authorities in the U.S., with many expecting it to reach the Supreme Court. The Commodity Futures Trading Commission (CFTC) and the companies argue these event contracts are regulated "swaps" under federal jurisdiction. In response, a Polymarket spokesperson stated that city-level actions contradict the established federal regulatory framework for CFTC-registered prediction markets.

Baltimore and its mayor, Brendan Scott, have filed lawsuits against Kalshi and Polymarket, alleging the companies violated local gambling laws.

In a notice published on Thursday, the Baltimore Mayor's Office stated that the two prediction market platforms operated as "illegal, unlicensed sports betting platforms" and misled users about "the legality and regulated status of their products." The lawsuits challenge Kalshi and Polymarket's interpretation of event contracts: according to the plaintiffs' arguments, such transactions constitute illegal wagers under state law.

"These companies are running sportsbooks without licenses and hoping a new label will put them above the law," Scott stated. "It won't. Baltimore will not allow multibillion-dollar companies to put profits over people and harm our communities through illegal gambling."

Baltimore's lawsuit against Kalshi lists Robinhood, Webull, and Coinbase as partners of the prediction market platform. The city accused all companies of unfair practices: they advertised sports contracts as instruments that could be "legally bought and sold in Maryland."

The legal action against the prediction market companies marks another conflict between state and federal authorities in the United States. Many experts expect the case to reach the Supreme Court. The U.S. Commodity Futures Trading Commission (CFTC), chaired by Michael Selig, and the companies have argued that event contracts on prediction markets constitute "swaps" falling under its regulatory purview. Baltimore's lawsuits, along with statements from other state authorities, challenge this assertion.

"Local-level actions contradict the established CFTC regulatory framework for prediction markets," a Polymarket representative stated in a comment to Cointelegraph regarding the lawsuit. "As courts have recognized, prediction markets on CFTC-registered exchanges are regulated by federal law, not a patchwork of state and local regulations."

Related: Court Stays CFTC Case Against US Service Member Over Prediction Market Bets

Пов'язані питання

QWhat legal action has the city of Baltimore taken against Kalshi and Polymarket, and why?

ABaltimore and its mayor, Brendan Scott, have filed lawsuits against Kalshi and Polymarket, alleging that the companies violated local gambling laws by operating as illegal, unlicensed sports betting platforms and misleading users about the legality of their products.

QWhat specific argument does Baltimore make regarding the contracts offered by Kalshi and Polymarket?

ABaltimore argues that the event contracts offered by Kalshi and Polymarket are illegal wagers under state law, not legitimate financial instruments as the companies portray them.

QAccording to the article, what larger regulatory conflict do the Baltimore lawsuits represent?

AThe lawsuits represent a conflict between state/local authorities and federal regulators. The CFTC claims event contracts on prediction markets fall under its jurisdiction as 'swaps,' while state and local governments like Baltimore challenge this federal oversight.

QWhich major financial platforms are named as partners of Kalshi in Baltimore's lawsuit?

ABaltimore's lawsuit against Kalshi names Robinhood, Webull, and Coinbase as partners of the platform, accusing all companies of unfair practices in advertising sports contracts.

QWhat is Polymarket's defense against Baltimore's lawsuit, as cited in the article?

APolymarket argues that CFTC-registered prediction markets are governed by federal law, not a patchwork of state and local regulations, and that city-level actions contradict the established federal regulatory framework.

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