According to CoinMeta, the city of Baltimore and Mayor Brendan Scott have filed lawsuits against Kalshi and Polymarket, accusing the two companies of violating local gambling laws and engaging in deceptive business practices. The mayor's office stated that the companies operated "illegal, unlicensed sports betting platforms" and misled users regarding the legality and regulatory status of their products. Baltimore believes that Kalshi and Polymarket described these contracts as transactions, but in reality, these transactions constituted illegal gambling prohibited by state law. The lawsuit against Kalshi also lists Robinhood, Webull, and Coinbase as partners of their predictive market platform, accusing them of promoting these sports contracts as products that could be legally purchased and traded in Maryland. The Commodity Futures Trading Commission (CFTC) and the relevant companies argue that these predictive market contracts fall within the scope of their regulatory authority as "swaps." Polymarket stated that the predictive markets operated by exchanges registered with the CFTC are governed by federal laws and should not be subject to state and local regulations.