The Coalition for Prediction Markets (CPM) has raised concerns about “concerning evidence” indicating that various state gaming regulators may be collaborating with the American Gaming Association (AGA) to hinder the expansion of yes/no betting platforms.
In correspondence directed to 20 state auditors and inspectors general, the coalition draws attention to the Maryland Lottery and Gaming Control Agency, which sent a critical letter to the Commodities Futures Trading Commission — the federal body overseeing prediction markets — regarding yes/no exchanges last year. The Maryland agency previously labeled contracts for sports events as an “illegal” form of sports betting.
Through Freedom Of Information Act (FOIA) inquiries, Fox45 Baltimore uncovered that the Maryland regulator transmitted a letter to the CFTC that closely mirrored a draft supplied by the AGA — the principal trade organization for casinos and sportsbooks in the U.S. The CPM suggests this may be just the beginning of a larger issue.
“Public records obtained under FOIA imply that the Maryland Lottery and Gaming may be collaborating with the AGA and other unidentified entities to further the interests the AGA represents by obstructing DCMs from offering event contracts,” the coalition stated in its letter. “We anticipate that these documents may only represent a fragment of a more extensive and systematic scheme involving multiple parties.”
Maryland is among the states that were recipients of the CPM letter, with Nevada also included. Nevada is significant here because the CPM asserts that in March 2025, Maryland Lottery and Gaming Control’s John Martin “distributed a cease-and-desist order previously issued to Kalshi by the Nevada Gaming Control Board.”
The CPM further indicates that in April 2025, Martin shared with undisclosed recipients materials from the AGA, including a draft letter intended for the CFTC and a list of email addresses for commissioners.
CPM Asserts Coordination Is ‘Confirmed’
The CPM cites Utah, a state known for its strong opposition to wagering where lawmakers are openly against prediction markets, as evidence of the collaboration suggested by the Maryland communications.
“During a hearing on June 25, 2026, counsel for Utah disclosed in court that he was aware of specific facts regarding Kalshi because the AGA had informed him,” the coalition noted. “This admission is pivotal as it seems to validate that the AGA is orchestrating, or at the very least coordinating, the broader multi-state initiative that the Maryland emails indicate.”
Utah State Auditor Tina Cannon was one of the recipients of the CPM letter. Minnesota, which enacted legislation in May prohibiting prediction markets, and Illinois, which recently imposed a transaction tax on yes/no exchanges, also received the communication. The CFTC is legally challenging these actions.
AGA and CPM Might Be Heading for a Conflict
The CPM notes that the cases involving Maryland and Utah, along with the documents revealed through the Fox 45 FOIA requests, raise ethical and legal concerns.
“When state regulators align themselves with a private industry trade group and a covert coalition of other entities in such a manner, it appears they are not acting as neutral regulators protecting the public interest, but rather as stakeholders using regulatory power to promote a private agenda,” the group stated.
Nevertheless, it is common for trade associations to provide their member companies with communication materials and talking points. The AGA has consistently opposed prediction markets, claiming that the sector has cost state and tribal governments approximately $1 billion in tax revenue.
The CPM was established last December by Crypto.com and Kalshi. Its other members include Coinbase Global (NASDAQ: COIN), Robinhood Markets (NASDAQ: HOOD), and Underdog.