According to The Block, Mayor Brandon Scott and the Baltimore City Council have formally initiated legal action against a group of prominent digital asset firms. The lawsuit targets Kalshi and Polymarket specifically for their involvement in prediction markets that allegedly facilitate illegal sports betting activities within the city jurisdiction.
The conflict extends beyond mere market operators, as the complaint has successfully dragged major cryptocurrency exchanges into the litigation process. Robinhood, Webull, Coinbase, and several other trading platforms are now roped into this ongoing fight alongside Kalshi and Polymarket. The core allegation driving this unprecedented legal battle is that these entities have enabled residents to place wagers on sporting events without obtaining proper state licensure.
The timing of the filing marks a significant escalation, bringing high-profile financial institutions before local courts over regulatory compliance issues regarding sports wagering laws in Maryland. By bundling prediction market operators with standard crypto exchanges, the city aims to hold all involved parties accountable for allowing transactions that bypass existing gambling regulations.
This move represents one of the first major attempts by a municipal government to directly sue cryptocurrency firms under state sports betting statutes. If successful, such precedents could reshape how digital asset platforms operate in jurisdictions with strict traditional gambling laws nationwide. The inclusion of Robinhood and Webull suggests that regulators are treating all forms of remote wagering equally regardless of whether they occur on prediction markets or standard trading interfaces.
