The state of Maryland has become the latest in a string across the nation to step up and push back on prediction markets as several retailers continue to posture.
Key Takeaways
- Maryland’s Lottery and Gaming Control Commission released a formal memo warning any operators involved in unregulated prediction markets could face major consequences.
- The move comes in the wake of other states such as Massachusetts, Nevada, and Ohio, all drawing a proverbial line in the sand on prediction markets.
- FanDuel and DraftKings are making their own moves, including a recent exit from the American Gaming Association as they begin preparing to launch their own prediction markets.
In a Wednesday release, Maryland Lottery and Gaming Control Commission secretary John Martin issued a memo, warning that any efforts by licensed operators to enter the prediction market space could have implications for retaining their licenses in the Maryland sports betting industry.
“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,” Martin’s release noted. “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 move by Maryland regulators follows a string of decisions by states such as Massachusetts, Nevada, and Ohio, which similarly aim to dissuade sportsbooks from entering the prediction markets space.
NEW: Maryland becomes the 7th state to warn licensees about involvement in prediction markets. Per @MDLottery, "any direct or indirect" association with sports event contracts in "any jurisdiction" where such activity is illegal or unauthorized "may" have licensing implications. pic.twitter.com/WxPx4eA5A8
— Daniel Wallach (@WALLACHLEGAL) November 20, 2025
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Warning comes as sportsbooks begin shifting
In the case of both Maryland and Massachusetts specifically, their individual decisions to release memos within the last week come right on the heels of FanDuel and DraftKings positioning themselves to enter the prediction market in the weeks to come.
On Tuesday, both sportsbooks announced they would be ending their membership with the American Gaming Association as they planned to launch their own prediction market platforms in the near future.
“As the company’s business strategy evolves – including with prediction markets – DraftKings determined that its plans no longer fully align with the AGA’s direction in certain areas and has decided to relinquish its membership,” a DraftKings spokesperson said.
Prediction markets, notably, do not have to abide by the same regulations as traditional sportsbooks, including the ability to purchase contracts (rather than bet) on everything from sports to politics, and even pop culture, in conjunction with the notable difference that users are only required to be 18 years old.
“FanDuel has built our business by maintaining strong industry partnerships. We value the spirit of collaboration that comes with these relationships. But as we expand into prediction markets, we recognize this direction is not aligned with the American Gaming Association's current priorities for its member operators,” the operator said in a Q3 earnings call.
“FanDuel has always been the company that moves quickly, from daily fantasy to mobile sports betting to prediction markets. We build what consumers want, and we operate with an unwavering commitment to integrity.”
