Polymarket Faces Baltimore Lawsuit and Lost JPMorgan Banking Relationship

Baltimore has sued prediction market operators Kalshi and Polymarket, accusing both of running unlicensed sportsbooks in the city.

Mayor Brandon Scott and the City Council filed the complaints Thursday in Circuit Court for Baltimore City.

Baltimore Sues Kalshi and Polymarket

The city says both platforms let residents bet on game winners, point spreads, point totals, and player statistics. Those propositions match products sold by licensed sportsbooks, according to the complaints.

Both companies call them event contracts. However, Baltimore argues they function as sports bets and amount to unlawful gambling under Maryland law.

Furthermore, the lawsuit claims that the missing licenses free both firms from the tax bills, audits, and player-protection rules that licensed operators carry.

The complaints also allege the platforms advertise in ways that suggest their products are lawful and properly supervised. The city says that impression draws in inexperienced bettors and problem gamblers who stand to lose money.

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

The city wants an injunction blocking both platforms from taking transactions from residents. It also seeks civil penalties of up to $1,000 per violation per day. Restitution for affected consumers and disgorgement of profits round out the demands.

“For each violation of the CPO, and for each day that a violation was committed, Plaintiff is entitled to civil penalties of up to $1,000. Baltimore City Code Art. 2, § 4-4,” the lawsuit reads.

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Cities and States Widen the Prediction Market Fight

Baltimore joins a growing list of jurisdictions taking prediction markets to court. Kentucky Attorney General sued Kalshi and Polymarket in June alongside casino game operator VGW.

Wisconsin’s Department of Justice brought Dane County lawsuits in April, naming Kalshi, Polymarket, Robinhood, Coinbase, and Crypto.com. Nevada moved earliest, halting Kalshi entirely in March through a 14-day restraining order.

Meanwhile, the New York City Council opened a probe into prediction markets on Wednesday. Speaker Julie Menin gave the platforms 14 days to disclose city user numbers and revenue.

However, federal preemption remains the industry’s core defense, and it has worked. Whether a city ordinance survives that same argument is the next test.

Banks Keep Their Distance Too

Institutional caution runs alongside the legal pressure. The Financial Times reported that JPMorgan ended its banking relationship with Polymarket last year amid regulatory concerns. The prediction-market platform has since moved to another lender.

JPMorgan has nevertheless retained some links to Polymarket, including inviting CEO Shayne Coplan to speak at a Miami conference.

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