Baltimore Files Lawsuits Against Prediction Market Operators for Illegal Sports Betting

The City of Baltimore has initiated legal action against prediction market companies Kalshi and Polymarket, alleging that these platforms are facilitating illegal sports betting and engaging in deceptive consumer practices. According to the City, these operators are offering wagering opportunities on sporting events, including game outcomes, point spreads, and player statistics, in violation of Maryland law. These actions are being brought forth by Mayor Brandon M. Scott and the City Council.

The lawsuits, filed in the Circuit Court for Baltimore City, contend that Kalshi and Polymarket are operating without the necessary licenses required for sports betting in Maryland. The City argues that by rebranding these wagers as “event contracts” or “prediction-market trades,” the companies are attempting to circumvent regulations that govern licensed sportsbooks. These licensed operators are subject to oversight, taxation, and responsible gambling mandates, which the City claims Kalshi and Polymarket are avoiding. The legal complaints highlight that the platforms offer a range of bets similar to those found on traditional online sportsbooks.

City officials assert that Kalshi and Polymarket are misleading consumers by presenting their services as lawful and properly regulated. This alleged misrepresentation is particularly concerning as it makes gambling readily accessible to Baltimore residents, potentially exposing vulnerable populations, including young adults and individuals with gambling problems, to significant financial harm. The City aims to utilize its consumer protection authority to halt these alleged deceptive and unlawful practices and hold the companies accountable for endangering its residents.

The legal challenges filed by the City of Baltimore include claims of unfair, abusive, and deceptive trade practices under the local Consumer Protection Ordinance. The City is seeking a range of remedies, including civil penalties, injunctions to cease operations, restitution for affected consumers, and the disgorgement of profits gained through these alleged illegal activities. The legal team representing the City in these matters includes members from the Baltimore City Law Department and the law firm DiCello Levitt.

Article by Mel Anara, based upon information from the City of Baltimore

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