Kalshi Ordered to Cease Most Operations in Washington State

In parallel, the City of Baltimore has initiated legal action against prediction market platforms Kalshi and Polymarket. The lawsuits allege that these companies have violated local gambling ordinances and engaged in deceptive trade practices. Specifically, the city contends that the platforms are offering unlicensed sports betting. Baltimore disputes the companies' classification of their event contracts as legitimate trades, asserting they are in fact illegal wagers.

The legal challenges highlight a growing tension between prediction market operators and regulatory bodies concerning the nature of event contracts. While companies like Kalshi and Polymarket argue their platforms facilitate the trading of information and are distinct from gambling, cities and states are increasingly scrutinizing these operations under existing gambling and consumer protection laws. The core of the dispute lies in whether these contracts constitute speculative investments or illegal bets, particularly when tied to sporting events.