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City of Baltimore Goes After Prediction Markets for Sports Betting

Baltimore authorities filed a lawsuit arguing against the CFTC’s authority over prediction market companies, in another legal action challenging claims by the federal regulator.

YayaNewsFinancial news writer2026-08-14 06:03Updated: 2026-08-14 06:034 ViewsSource CoinTelegraph

YayaNews contributes financial news and market context through the YayaNews editorial workflow.

Baltimore authorities filed a lawsuit arguing against the CFTC’s authority over prediction market companies, in another legal action challenging claims by the federal regulator.

City of Baltimore Goes After Prediction Markets for Sports Betting

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Written by

Turner Wright

staff writer

Reviewed by

Sam Bourgi

staff writer

Written by

Turner Wright

staff writer

Reviewed by

Sam Bourgi

staff writer

City of Baltimore goes after prediction markets for sports betting

Latest News

Published

Aug 13, 2026

The city’s complaint over gambling laws and deceptive trade practices included Robinhood, Webull and Coinbase as partners with prediction market platform Kalshi.

The City of Baltimore and its mayor, Brendan Scott, filed lawsuits against Kalshi and Polymarket over allegations that the companies violated local gambling laws.

In a Thursday notice, the Baltimore mayor’s office

said

that the two prediction market companies operated “illegal, unlicensed sports-betting platforms” and misled users about the ”legality and regulatory status of their products.” The lawsuits are centered on claims disputing Kalshi’s and Polymarket’s characterization of event contracts, arguing that the trades amount to unlawful wagers under state laws.

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

Notably, the city’s complaint against Kalshi included Robinhood, Webull and Coinbase as partners with the prediction market platform. All companies were accused of deceptive practices by marketing sports contracts as something that can ”lawfully be purchased and traded in Maryland.”

The legal action against prediction market companies was the latest conflict between US state and federal authorities, and many experts expect it to end with an appeal to the Supreme Court. The US Commodity Futures Trading Commission (CFTC), under Chair Michael Selig, and companies have

argued that event contracts on prediction markets

amount to “swaps” within its purview, while both Baltimore lawsuits and other state-level authorities dispute that claim.

“City-specific action runs counter to the CFTC’s established framework for regulating prediction markets,“ a Polymarket spokesperson told Cointelegraph in response to the lawsuit. “As courts have recognized, prediction markets on CFTC-registered exchanges are governed by federal law, not a patchwork of state and local rules.”

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Law

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Kalshi

Polymarket

Prediction Markets

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