- Maryland gaming regulators say sportsbooks can not align with prediction markets regulated on the federal degree
- The warning brings into query the way forward for the DraftKings, FanDuel, and Fanatics sportsbook licenses in Maryland
Maryland sportsbooks and fantasy sports activities operators have been informed to keep away from sports activities prediction markets, which state officers warn might jeopardize the nice standing of their gaming licenses.
Baltimore’s Interior Harbor Waterfront Promenade and the Nationwide Aquarium. Maryland’s gaming regulatory company is warning sportsbooks that partaking in prediction markets might jeopardize their sports activities betting licenses. (Picture: Shutterstock)
This week, the Maryland Lottery and Gaming Management Fee notified its licensed sports activities betting and fantasy sports activities operators concerning its opinion that prediction markets providing contracts involving sports activities represent an “criminal activity” within the Previous Line State. Ought to licensed fantasy sports activities, sportsbooks, and/or wagering services take part in such unlawful actions, their licenses may very well be revoked.
All Maryland licensees and operators are reminded that any ‘criminal activity,’ in any jurisdiction, might bear negatively in your {qualifications} for a Fee-issued license, registration, or certification in Maryland,” the state gaming regulator wrote its sportsbook and fantasy sports activities companions. “Accordingly, any direct or oblique affiliation, for any monetary acquire, with any unlicensed individual that enables people to purchase, promote, or commerce sporting occasion contracts … is an ‘criminal activity.’”
Maryland is residence to each in-person and on-line sports activities playing, in addition to on-line day by day fantasy sports activities (DFS).
Sportsbook Leaders at Danger
Amongst Maryland’s cell sportsbook operators are the 2 dominant business leaders in FanDuel and DraftKings. Fanatics, BetMGM, Caesars Sportsbook, and BetRivers are among the many different notable on-line sportsbooks in Maryland.
The state’s warning about sports activities prediction markets offers with entities which can be working underneath federal oversight by Designated Contract Market (DCM) licenses granted by the US Commodity Futures Buying and selling Fee.
In current weeks, a number of of Maryland’s licensed sportsbooks have struck partnerships with DCM-licensed prediction markets to supply sports activities occasion contracts in states the place sports activities betting isn’t allowed, like California and Texas.
DraftKings aligned with Railbird Alternate for DraftKings Predicts, FanDuel partnered with CME Group for FanDuel Predicts, and Fanatics struck a take care of Crypto.com. The partnerships are to expedite the sportsbooks’ entries into sports activities prediction markets with already-established DCM permits.
Maryland’s warning brings the way forward for these three sportsbook licenses into query.
“The Fee hereby notifies that any involvement within the providing of sporting occasion contracts, immediately or through an affiliate, key individual, associated enterprise entity, or different affiliation, on a DCM and not using a legitimate Maryland sports activities wagering license might have implications to your licensure if finished so opposite to regulatory necessities for a sports activities wagering the license,” the Maryland Lottery and Gaming Management Fee letter continued. “The Fee expects any licensee that’s actively pursuing any involvement with an trade or DCM that’s regulated by the CFTC to offer immediate discover to the Fee.”
Nationwide Crackdown
Prediction markets like Kalshi, Polymarket, Crypto.com, Sportrade, and ProphetX imagine the legislation is on their facet due to the US Structure’s Supremacy Clause. Whereas Maryland gaming regulators be part of these in Massachusetts, Michigan, Nevada, New York, Ohio, and Pennsylvania in questioning sports activities prediction markets, the rising “monetary” markets probably have the help of President Donald Trump’s administration.
Donald Trump Jr. is an advisor to Kalshi and Polymarket, and Trump Media is exploring its personal foray into prediction markets. The presumed subsequent head of the CFTC, Michael Selig, is a detailed Trump ally who is understood for favoring a crypto-friendly regulatory setting.
