Maryland’s gambling regulator has issued an official warning to licensed operators, signalling increased scrutiny of prediction market participation. The Maryland Lottery and Gaming Control Commission notified casinos, online sportsbooks, and DFS operators that involvement in prediction markets could threaten their ability to operate within the state. The advisory stated that offering sporting event contracts through designated contract markets without a Maryland sports wagering licence constitutes illegal gambling under existing law.
What differentiates this notice from prior state advisories is Maryland’s decision to expand accountability beyond operators. Affiliates, executives, and associated entities may also face review if found to be connected to prediction market activity. The state further highlighted that participation in these markets outside Maryland’s jurisdiction may still affect a company’s regulatory status.
This announcement comes at a pivotal time. Major operators including FanDuel, DraftKings, and Fanatics are preparing to launch prediction-focused products through registered market platforms and partnerships with financial market providers. As interest in regulated prediction markets accelerates, states are responding with increased oversight and clarification.
Maryland joins multiple US jurisdictions issuing guidance and warnings, though no state has yet imposed fines or revoked licences. Previous enforcement actions include Nevada’s record, where FanDuel surrendered its licence and DraftKings withdrew inactive applications to avoid review. Other states including New York have indicated willingness to evaluate market authorisation compliance.
As prediction markets expand, operators now face the challenge of navigating fragmented state interpretations and compliance frameworks. Maryland’s notice represents an increasingly proactive trend in regulatory oversight across the evolving US prediction market landscape.
