Baltimore and Nevada Regulators Sue Prediction Market Kalshi

Prediction market operator Kalshi is facing simultaneous legal challenges in Maryland and Nevada over the legality of its trading platforms. In Baltimore, Mayor Brandon Scott and the City Council filed lawsuits in the Circuit Court for Baltimore City, accusing Kalshi and Polymarket of operating unlicensed sportsbooks. The city alleges the platforms allow residents to bet on game winners and player statistics in violation of Maryland law, thereby evading taxes and player-protection regulations.

Baltimore is seeking an injunction to block resident transactions, civil penalties of up to $1,000 per violation per day, and the disgorgement of profits. Kalshi has stated it will defend these claims in court, maintaining that it is a regulated and transparent marketplace.

Separately, Kalshi is embroiled in a dispute with the Nevada Gaming Control Board over a court-ordered geofencing mandate intended to block Nevada residents from trading. The regulator is seeking daily penalties of $120,000, claiming investigators successfully placed nine trades after the compliance deadline. Kalshi has accused the board of violating federal law, alleging that investigators misrepresented their residences to circumvent blocking measures provided by the licensed vendor GeoComply.