Updated Aug 13, 2026
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Baltimore sues Kalshi, Polymarket and trading platforms over alleged illegal sports betting

BALTIMORE, Aug. 13. Mayor Brandon Scott and the Baltimore City Council filed suit against prediction market operators Kalshi and Polymarket, naming Coinbase, Robinhood and Webull as defendants. The city alleges all five companies participated in illegal sports betting.

By Sofia Almeida2 min read
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Key takeaways

  • Baltimore Mayor Brandon Scott and the City Council filed suit on Aug. 13 against Kalshi, Polymarket, Coinbase, Robinhood and Webull, alleging illegal sports betting.
  • The suit names two categories of defendants: prediction market operators Kalshi and Polymarket, and distribution platforms Coinbase, Robinhood and Webull that gave users access to those markets.
  • Kalshi and Polymarket argue their event contracts are commodity contracts rather than wagers, while Baltimore treats sports-outcome contracts as bets under gambling law.
  • Baltimore's theory holds that providing access to the prediction markets makes the distribution platforms liable alongside the operators.
  • Source reporting on the suit did not include a damages figure, a specific statute, or quotes from Scott or council members.

BALTIMORE, Aug. 13. Mayor Brandon Scott and the Baltimore City Council filed suit against prediction market operators Kalshi and Polymarket, naming Coinbase, Robinhood and Webull as defendants. The city alleges all five companies participated in illegal sports betting.

Who is named and why

The filing draws on two categories of defendants. Kalshi and Polymarket run event-contract platforms that let users take positions on the outcomes of real-world events, including sports contests. Users pay to enter a position and collect on a correct prediction. Both companies have argued their products are commodity contracts, not wagers, a framing they have used to push back against gambling regulators.

Coinbase is a cryptocurrency exchange. Robinhood and Webull are retail trading apps. All three have offered users access to one or both prediction markets named in the suit. Baltimore's theory holds that providing that access makes the distribution platforms liable alongside the operators themselves.

The legal tension

Prediction markets occupy contested legal ground. Operators typically argue their products fall under federal commodity law, insulating them from state gambling statutes. Baltimore reads them differently: the city treats sports-outcome contracts as bets under applicable gambling law regardless of how they are packaged as financial instruments.

Kalshi has litigated at the federal level to defend its event contracts against regulatory challenges. That dispute has centered on where the line sits between a commodity contract and an illegal bet. Baltimore is now pressing the same question at the municipal level, using a different enforcement path.

What the filing does not say

No damages figure or specific statute appeared in source reporting on the suit. Mayor Scott signed on with the council as a co-plaintiff, making this a joint political and legal action rather than a routine administrative referral. No quotes from Scott or council members were included in available coverage of the filing.

The case names five defendants: Kalshi, Polymarket, Coinbase, Robinhood and Webull.

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Frequently asked

Which five companies is Baltimore suing?

The suit names Kalshi, Polymarket, Coinbase, Robinhood and Webull as defendants.

Why are Coinbase, Robinhood and Webull included alongside Kalshi and Polymarket?

All three offered users access to one or both prediction markets, and Baltimore argues that providing that access makes the distribution platforms liable alongside the operators.

What is the legal dispute at the center of the case?

The case turns on whether sports-outcome event contracts are commodity contracts under federal law, as operators argue, or illegal bets under state gambling law, as Baltimore contends.

Who filed the suit for Baltimore?

Mayor Brandon Scott signed on as a co-plaintiff with the Baltimore City Council, making it a joint political and legal action.

Did the filing specify damages or a statute?

No damages figure or specific statute appeared in source reporting on the suit.