The Maryland Lottery and Gaming Control Commission has issued an official warning to operators currently licensed or potentially looking to enter the state of conducting business related to prediction markets or the trading of sporting event contracts.
Signed by Commission Secretary John Martin, the letter states "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.
"As the Commission fulfills its statutory duty to monitor and evaluate each of the licensee's continued qualifications for licensure, it may consider whether the licensee and its affiliates, key persons, related business entities and any other associates are properly licensed to offer sporting event contracts in Maryland and other jurisdictions."
Maryland now joins states such as Pennsylvania, Michigan, Ohio and Illinois in speaking out against prediction market operations, which will seemingly expand by 2026 given the recent partnerships and acquisitions formed by DraftKings, FanDuel, PrizePicks and Underdog Fantasy.
The Maryland Lottery and Gaming Control Commission also shared how offering a sporting event contract through a designated contract market (DCM) without a valid sports wagering license would be deemed as an "illegal activity" carried out by operators.
"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 letter said.
"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 on a DCM is an 'illegal activity.'"
The Commission expects any operator currently licensed to conduct business in Maryland to provide "prompt" notice of possible involvement with an exchange or DCM which is also regulated by the Commodity Futures Trading Commission.
Maryland's sports wagering market generated $14.1m in state contributions throughout October 2025, according to figures released by the Maryland Lottery and Gaming Control Agency on November 10
