Baltimore City Takes Legal Action Against Kalshi and Polymarket for Illegal Sports Betting Platforms
Baltimore City officials have taken legal action against prediction market operators Kalshi and Polymarket for allegedly running illegal sports betting platforms and misleading consumers about the legality and regulation of their products. The lawsuits filed by Mayor Brandon Scott and the Baltimore City Council claim that the companies violated the city's Consumer Protection Ordinance by offering unlicensed sports betting options that function as sports bets, despite being marketed as "event contracts" or prediction-market trades. These platforms allow Baltimore residents to place wagers on various sports-related outcomes without the necessary licenses required under Maryland law, potentially exposing vulnerable populations to financial harm.
The complaints assert that Kalshi and Polymarket offer a range of sports wagering options similar to those available through licensed sportsbooks, including game winners, point spreads, player statistics, and other propositions. The companies are accused of operating in a manner that creates a false impression of legality and regulation, making gambling easily accessible to consumers while avoiding oversight, taxation, responsible gambling requirements, and consumer protections imposed on licensed operators. The city argues that allowing these companies to circumvent gambling laws could have broader implications beyond Baltimore and set a dangerous precedent.
In response to these allegations, Baltimore is seeking civil penalties, injunctive relief, restitution for affected consumers, disgorgement of profits obtained through illegal activities, and other remedies permitted under the city's Consumer Protection Ordinance. The lawsuits aim to hold Kalshi and Polymarket accountable for their actions and ensure that consumers are protected from potentially harmful and deceptive practices in the online sports betting industry.
In conclusion, Baltimore City officials have taken legal action against prediction market operators Kalshi and Polymarket for allegedly running illegal sports betting platforms and misleading consumers about the legality and regulation of their products. The lawsuits aim to address the companies' alleged violations of the city's Consumer Protection Ordinance and seek remedies to protect consumers from potential financial harm and deceptive practices in the online sports betting market.