BALTIMORE, MD—The Maryland Lottery and Gaming Control Commission on Monday issued letters to commodity trading businesses KalshiEX, LLC (Kalshi), Robinhood Derivatives, LLC (Robinhood) and North American Derivatives Exchange, Inc. (doing business as Crypto.com), directing them to stop offering sports event contracts in Maryland.
Maryland Lottery and Gaming informed the three companies that the sports event prediction markets they offer via their online platforms are indistinguishable from sports wagering because they are based on the outcomes of sporting events. The existence of these markets circumvents Maryland law (State Government Article §9–1E–01, et seq.), which defines sports wagering and permits it to be offered only by licensed operators. The law additionally requires customer age and identity verification to confirm that sports wagering participants are at least 21, as well as geolocation to confirm that participants are physically located in Maryland when they place a wager. Commodity traders do not operate under these requirements.
“We view this as a legal matter and a consumer protection matter, and there is also a fiscal interest for the State,” said Maryland Lottery and Gaming Director John Martin. “Each of Maryland’s legal sports wagering operators completed a rigorous licensing process and is subject to extensive regulations that include responsible gaming requirements. The commodity traders aren’t bound by those same guardrails. They’re conducting sports wagering without a license, and in doing so, they’re avoiding the collection of sports wagering taxes that legal operators pay to the State.”
Licensed sportsbooks in Maryland contribute 15% of their taxable proceeds to the Blueprint for Maryland’s Future Fund, which supports public education programs. The contributions have totaled nearly $61.2 million through the first eight months of FY2025 (July 2024 through February 2025), and are nearly $150 million since the launch of Maryland’s sports wagering program in December 2021.
Kalshi, Robinhood and Crypto.com have made their sports prediction markets available across the United States. Maryland is the sixth state to issue cease-and-desist letters to at least one of the companies, following New Jersey, Nevada, Ohio, Illinois and Montana.
Under Maryland law, a gaming activity is illegal unless it is expressly authorized. Sports wagering via licensed operators and fantasy competitions offered by registered operators are the only legally authorized online gaming options available in Maryland. No other forms of real-money online gaming or wagering are operating legally in the State. Maryland Lottery and Gaming maintains lists of licensed online sports wagering operators and registered fantasy competition operators, and has published cease-and-desist letters it has issued at mdgaming.com.
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