Maryland Joins Nationwide Push Against Prediction Markets with Cease-and-Desist Orders
Maryland Takes Action
The commission directed these three firms to immediately halt their offerings of sports event contracts within the state. Maryland has officially become 6th state in a growing nationwide effort to address prediction markets that regulators view as encroaching on regulated sports betting territory.
The MLGCC contends that these firms’ prediction markets, which hinge on sports event outcomes, closely resemble sports wagering.
Under Maryland law, only licensed operators may offer such activities, adhering to requirements like age verification, identity confirmation, and geolocation checks to ensure bettors are physically present in the state.
The commission asserts that Kalshi, Robinhood, and Crypto.com operate outside these mandates, lacking the necessary licenses and oversight.
Regulatory and Fiscal Rationale
John Martin, director of Maryland Lottery and Gaming noted that it addresses legal compliance, consumer protection, and the state’s financial interests. Licensed sports betting operators in Maryland undergo a rigorous vetting process and comply with extensive regulations, including responsible gaming measures.
In contrast, these commodity traders bypass such standards and avoid contributing taxes, which amounted to $61.2 million for education in the first eight months of fiscal year 2025 from legal sportsbooks.
The MLGCC has given the firms 15 days to confirm compliance with the order.
Montana Adds Pressure
Montana joined the effort earlier, with its Gambling Control Division of the Department of Justice issuing a cease-and-desist notice to Kalshi on March 26, 2025. The division classified Kalshi’s sports event contracts as “illegal gambling” under Montana law, noting they involve risking money on chance-based outcomes without a state gaming license.
Defined as sports wagering, these activities fall outside permitted operations. The division indicated a similar notice is in preparation for Robinhood and expressed a preference for voluntary compliance, though legal action remains an option if Kalshi resists.
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