Baltimore Takes On Kalshi and Polymarket, Pulling Coinbase Into the Fight

Baltimore Mayor Brandon Scott and the City Council filed lawsuits Thursday against Kalshi and Polymarket, alleging their sports-event contracts amount to unlicensed gambling, according to court filings reported today.

The cases also pull Coinbase, Robinhood and Webull into the dispute because their platforms distribute Kalshi contracts. Baltimore is seeking penalties, restitution and an order blocking the companies from offering unauthorized sports betting to city residents. Kalshi argues that its federally regulated prediction markets operate under CFTC oversight, highlighting the growing tension between federal derivatives rules and state gambling laws. The company says prediction markets provide transparent, rules-based venues that differ from traditional sportsbooks and has vowed to defend its model in court.

The lawsuits add to a broader U.S. regulatory battle over prediction markets. The CFTC has asserted exclusive federal jurisdiction over regulated event contracts, while states and cities continue challenging sports-related offerings under local gambling laws. The outcome could influence how crypto-linked platforms participate in emerging prediction markets across the United States.

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