The City of Baltimore and its mayor Brendan Scott filed lawsuits against prediction market platforms Kalshi and Polymarket for violating local gambling laws. The lawsuits allege that these companies operated illegal, unlicensed sports-betting platforms and misled users about the legality and regulatory status of their products. The complaint against Kalshi also named Robinhood, Webull and Coinbase as partners, accusing them of deceptive practices by marketing sports contracts as lawful in Maryland. The CFTC and the companies argue that these event contracts amount to swaps under its purview, while the lawsuits dispute this classification. Experts expect the conflict to ultimately be resolved by an appeal to the Supreme Court.
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