Overview
Baltimore filed the first municipal enforcement action of the prediction-market fight (August 2026), suing under the city’s Consumer Protection Ordinance rather than state gambling law — alleging unlicensed sports betting and misleading consumers about legal and regulatory status. Unlike New York’s action it names the brokerage distributors (Coinbase, Robinhood and Webull entities) alongside the two Kalshi entities. Kalshi removed it to federal court on August 14, 2026 on diversity grounds, where it is before Judge James K. Bredar. The theory matters beyond Baltimore: a municipal consumer-protection ordinance is cheap to replicate, and it operates independently of the state-versus-federal preemption fight running through the Fourth Circuit. (Federal docket D. Md. No. 1:26-cv-03217 confirmed via CourtListener; the state complaint is captioned City of Baltimore, ex rel. Ebony M. Thompson v. KalshiEX LLC, Thompson being the City Solicitor.)