Maryland has emerged as the latest state to caution licensed operators about the risks of offering prediction markets, joining a growing list of jurisdictions taking action against this evolving form of wagering. The Maryland Lottery and Gaming Control Commission (MLGCC) addressed letters to land-based casinos, digital sportsbooks, and daily fantasy sports (DFS) operators, stressing the legal implications of entering the prediction market space.
Legal Concerns Over Prediction Markets
In the letter, the MLGCC stated that “a sporting event contract offered on a designated contract market (‘DCM’) without a valid Maryland sports wagering license is an ‘illegal activity’ in our state because this is unlawful sports wagering.” The commission further emphasized that any engagement with a prediction market “in any jurisdiction”could negatively affect a Maryland license. In addition, it clarified that “any direct or indirect association for financial gain” with unlicensed markets would be deemed “illegal activity.”
This warning comes as FanDuel, Fanatics Sportsbook, and DraftKings— all licensed in Maryland — announced plans to launch prediction markets. FanDuel intends to go live next month in partnership with CME, DraftKings will roll out offerings following the acquisition of Railbird, and Fanatics CEO Michael Rubin confirmed a partnership with Crypto.com.
DFS Operators Included
Maryland’s approach is notable for explicitly including DFS platforms, which are often unregulated in other states. Under Maryland law, DFS operators are licensed and taxed by the MLGCC. Underdog, which partners with Crypto.com and operates in states like California and Texas, holds a Maryland license, whereas PrizePicks, launching with Kalshi, is not listed as a licensed DFS operator in the state.
Other licensed sports betting operators in Maryland include BallyBet, bet365, BetMGM, betParx, BetRivers, Caesars Sportsbook, Crab Sports, LetsBetMD, and Penn Entertainment, which is transitioning from ESPN Bet to theScoreBet.
Legal Battles and Enforcement
Maryland previously sent a cease-and-desist to Kalshi in April, prompting a lawsuit that is currently pending in the Fourth Circuit. A judge initially required Kalshi to halt operations, but both parties agreed to maintain services until the case concludes.
Although similar warnings have been issued by Arizona, Illinois, Massachusetts, Michigan, Nevada, and Ohio, no state has yet revoked licenses or imposed fines. Some operators, including FanDuel in Nevada, have surrendered inactive licenses, while DraftKings withdrew unutilized applications.
Industry Shifts Amid Warnings
The warnings coincide with operators preparing to enter the prediction market sector. Maryland and Massachusetts released memos as FanDuel and DraftKings publicly announced plans to leave the American Gaming Association in anticipation of launching their own platforms.
“As the company’s business strategy evolves – including with prediction markets – DraftKings determined that its plans no longer fully align with the AGA’s direction in certain areas and has decided to relinquish its membership,” a DraftKings spokesperson said.
“FanDuel has built our business by maintaining strong industry partnerships. We value the spirit of collaboration that comes with these relationships. But as we expand into prediction markets, we recognize this direction is not aligned with the American Gaming Association’s current priorities for its member operators,” the operator added.
Source:
“Maryland Regulator Latest To Warn Operators Off Prediction Markets”, ingame.com. November 20, 2025
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