Published on: November 22, 2025, 04:35h.
Updated on: November 21, 2025, 04:36h.
- Maryland gaming authorities state that sportsbooks should not associate with prediction markets regulated at the federal level.
- This alert raises concerns regarding the future of sportsbook licenses for DraftKings, FanDuel, and Fanatics in Maryland.
Maryland’s sportsbooks and fantasy sports operators have received guidance to steer clear of sports prediction markets, which could threaten the integrity of their gaming licenses, as per state officials.
This week, the Maryland Lottery and Gaming Control Commission alerted licensed sports betting and fantasy sports operators, declaring that prediction markets involving sports contracts are deemed “illegal activities” within the state. Engaging in such activities may lead to the revocation of their licenses.
“All Maryland licensees and operators are reminded that any illegal activity in any jurisdiction may adversely affect your eligibility for a Commission-issued license, registration, or certification in Maryland,” stated the state gaming regulator in a message to its sportsbook and fantasy sports partners. “Thus, any direct or indirect involvement for financial gain with any unlicensed individual permitting the buying, selling, or trading of sporting event contracts is considered an illegal activity.”
Maryland permits both in-person and online sports betting, in addition to online daily fantasy sports (DFS).
Risk for Major Sportsbooks
The leading mobile sportsbooks in Maryland include industry giants like FanDuel and DraftKings, along with other major players like Fanatics, BetMGM, Caesars Sportsbook, and BetRivers.
The state’s advisories regarding sports prediction markets pertain to entities operating under federal oversight through Designated Contract Market (DCM) licenses granted by the US Commodity Futures Trading Commission.
Recently, several licensed sportsbooks in Maryland have formed collaborations with DCM-licensed prediction markets to offer sports event contracts in states where betting is prohibited, such as California and Texas.
DraftKings partnered with Railbird Exchange for DraftKings Predicts, FanDuel joined forces with CME Group for FanDuel Predicts, and Fanatics collaborated with Crypto.com. These agreements aim to facilitate the sportsbooks’ entry into sports prediction markets under established DCM licenses.
Maryland’s alert casts uncertainty over the future of these three sportsbook licenses.
“The Commission hereby informs that any participation in offering sporting event contracts, either directly or through an affiliate, key individual, related business, or any other association on a DCM without a legitimate Maryland sports wagering license may jeopardize your licensure if such actions contradict regulatory requirements,” the Maryland Lottery and Gaming Control Commission’s notification continued. “The Commission expects any entity actively engaging with an exchange or DCM regulated by the CFTC to promptly notify the Commission.”
Nationwide Tightening
Entities like Kalshi, Polymarket, Crypto.com, Sportrade, and ProphetX are confident in their legal standing citing the US Constitution’s Supremacy Clause. While Maryland gaming regulators join counterparts in states such as Massachusetts, Michigan, Nevada, New York, Ohio, and Pennsylvania in scrutinizing sports prediction markets, these emerging financial avenues may receive backing from the Trump administration.
Donald Trump Jr. serves as an advisor to Kalshi and Polymarket, while Trump Media is considering its entry into prediction markets. The anticipated new leader of the CFTC, Michael Selig, is closely aligned with Trump and is known for supporting a crypto-friendly regulatory framework.