Baltimore sues Kalshi and Polymarket over unlicensed sports betting

RegulationDigital Finance
โดย NADA NEWS·US·Read original
Summary · why it matters

The city of Baltimore, Maryland, filed suit on August 13 in Baltimore City Circuit Court against prediction market operators Kalshi and Polymarket, alleging they are offering illegal sports betting without obtaining a state license. The lawsuit against Kalshi also names affiliates of Coinbase, Robinhood, and Webull that partner with the company to offer event contracts. The complaints argue that products the two firms call event contracts or prediction markets are essentially the same wagers as traditional sportsbooks covering game outcomes, point spreads, and player performance, allowing them to evade state oversight, taxation, responsible gambling measures, and consumer protections. Mayor Brandon Scott said in a statement that these companies are operating sportsbooks without a license and believe they can avoid the law by giving them a new name, but that will not work. Kalshi countered that it is a legitimate prediction market operating under federal regulation and said it will contest the claims in court. Baltimore is seeking the maximum civil penalties allowed by law, restitution to affected users, disgorgement of ill-gotten profits, and an injunction barring the offering of unlicensed sports betting in the city.

Impact on stocks 3

Digital Finance & Tokenization▼ · 3 stocks
Webull Corp
BULL
▼ NegativeRegulationrelevance

Webull is named as a partner of Kalshi in the lawsuit, facing legal risk over unlicensed sports betting.

Coinbase Global Inc
COIN
▼ NegativeRegulationrelevance

Coinbase affiliates are named in the lawsuit for partnering with Kalshi on event contracts.

Robinhood Markets Inc
HOOD
▼ NegativeRegulationrelevance

Robinhood affiliates are named in the lawsuit for partnering with Kalshi on event contracts.

Theme Impact 1

Off-coverage companies 2

KalshiPrivate▼ Negative
Regulationrelevance

Baltimore sues Kalshi directly, alleging illegal sports betting without a license.

PolymarketPrivate▼ Negative
Regulationrelevance

Baltimore sues Polymarket directly, alleging illegal sports betting without a license.

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