Maryland Officials Sue Prediction Market Platforms Over Unlicensed Sports Betting

Officials in Baltimore, Maryland have filed lawsuits against two major prediction market platforms.

The complaints target Kalshi and Polymarket for offering sports-related event contracts without required state licenses, reports CBS News.

City leaders allege the platforms compete directly with licensed sportsbooks while evading taxes, oversight, and consumer protections mandated under Maryland law.

Says the Mayor of Baltimore, Brandon Scott,

“These companies are running sportsbooks without licenses and betting that a new label will put them above the law. It won’t. Baltimore will not let multibillion-dollar companies put profits over people and harm our communities through illegal gambling.”

The suits claim the companies violate local consumer protection rules by misleading users about the legality and regulatory status of their offerings.

Similar actions have emerged in other states including New York and Kentucky as regulators challenge whether prediction markets qualify as unlicensed gambling.

Federal oversight through the Commodity Futures Trading Commission has allowed these platforms to operate across all 50 states with a minimum age of 18.

Major sports betting operators have started shifting focus toward prediction markets amid sluggish earnings in states without full legalization.

The cases highlight escalating tensions between federal authority and state efforts to enforce licensing requirements on event contracts tied to sports outcomes.

Plaintiffs seek to halt operations and impose penalties for bypassing responsible gambling standards.

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