In a letter signed by Commission Secretary John Martin, the regulatory body warned that any involvement in the offering of sporting event contracts—whether directly or through an affiliate, key person, related business entity, or other association—on a designated contract market (DCM) without a valid Maryland sports wagering license may have implications for an entity’s 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.”
Growing State Opposition to Prediction Markets
Maryland now joins Pennsylvania, Michigan, Ohio, and Illinois in taking a stance against prediction market operations. This regulatory scrutiny comes as the sector appears poised for expansion by 2026, driven by recent partnerships and acquisitions formed by major operators including DraftKings, FanDuel, PrizePicks, and Underdog Fantasy.
Unlicensed Activity Deemed Illegal
The Maryland Lottery and Gaming Control Commission clarified that offering a sporting event contract through a DCM without a valid sports wagering license would be classified as illegal activity 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. 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.’”
Disclosure Requirements
The Commission expects any operator currently licensed to conduct business in Maryland to provide prompt notice of possible involvement with an exchange or DCM that is also regulated by the Commodity Futures Trading Commission.
According to figures released by the Maryland Lottery and Gaming Control Agency on November 10, Maryland’s sports wagering market generated $14.1 million in state contributions throughout October 2025.
Source: Maryland Lottery and Gaming Control Commission
