Maryland Sportsbooks Warned About Sports Prediction Markets
Posted on: November 22, 2025, 04:35h.
Last updated on: November 21, 2025, 04:36h.
- Maryland gaming regulators say sportsbooks cannot align with prediction markets regulated on the federal level
- The warning brings into question the future of the DraftKings, FanDuel, and Fanatics sportsbook licenses in Maryland
Maryland sportsbooks and fantasy sports operators have been told to avoid sports prediction markets, which state officials warn could jeopardize the good standing of their gaming licenses.
This week, the Maryland Lottery and Gaming Control Commission notified its licensed sports betting and fantasy sports operators regarding its opinion that prediction markets offering contracts involving sports constitute an “illegal activity” in the Old Line State. Should licensed fantasy sports, sportsbooks, and/or wagering facilities participate in such illegal activities, their licenses could be revoked.
All Maryland licensees and operators are reminded that any ‘illegal activity,’ in any jurisdiction, may bear negatively on your qualifications for a Commission-issued license, registration, or certification in Maryland,” the state gaming regulator wrote its sportsbook and fantasy sports partners. “Accordingly, any direct or indirect association, for any financial gain, with any unlicensed person that allows individuals to buy, sell, or trade sporting event contracts … is an ‘illegal activity.'”
Maryland is home to both in-person and online sports gambling, as well as online daily fantasy sports (DFS).
Sportsbook Leaders at Risk
Among Maryland’s mobile sportsbook operators are the two dominant industry leaders in FanDuel and DraftKings. Fanatics, BetMGM, Caesars Sportsbook, and BetRivers are among the other notable online sportsbooks in Maryland.
The state’s warning about sports prediction markets deals with entities that are operating under federal oversight through Designated Contract Market (DCM) licenses granted by the US Commodity Futures Trading Commission.
In recent weeks, several of Maryland’s licensed sportsbooks have struck partnerships with DCM-licensed prediction markets to offer sports event contracts in states where sports betting isn’t allowed, like California and Texas.
DraftKings aligned with Railbird Exchange for DraftKings Predicts, FanDuel partnered with CME Group for FanDuel Predicts, and Fanatics struck a deal with Crypto.com. The partnerships are to expedite the sportsbooks’ entries into sports prediction markets with already-established DCM permits.
Maryland’s warning brings the future of those three sportsbook licenses into question.
“The Commission hereby notifies that any involvement in the offering of sporting event contracts, directly or via an affiliate, key person, related business entity, or other association, on a DCM without a valid Maryland sports wagering license may have implications to your licensure if done so contrary to regulatory requirements for a sports wagering the license,” the Maryland Lottery and Gaming Control Commission letter continued. “The Commission expects any licensee that is actively pursuing any involvement with an exchange or DCM that is regulated by the CFTC to provide prompt notice to the Commission.”
National Crackdown
Prediction markets like Kalshi, Polymarket, Crypto.com, Sportrade, and ProphetX believe the law is on their side because of the US Constitution’s Supremacy Clause. While Maryland gaming regulators join those in Massachusetts, Michigan, Nevada, New York, Ohio, and Pennsylvania in questioning sports prediction markets, the emerging “financial” markets likely have the support of President Donald Trump’s administration.
Donald Trump Jr. is an advisor to Kalshi and Polymarket, and Trump Media is exploring its own foray into prediction markets. The presumed next head of the CFTC, Michael Selig, is a close Trump ally who is known for favoring a crypto-friendly regulatory environment.
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