Maryland Lottery and Gaming orders stoppage of sports event contract offerings
The Commission issued letters to Kalshi, Robinhood and North American Derivatives Exchange, conducting business as Crypto.com, to cease operations within the state.
Key Points
- The existence of these markets is said to circumvent Maryland law, which defines sports wagering and permits it to be offered only by licensed operators
- Maryland is the sixth state to issue cease-and-desist letters to at least one of the companies, following New Jersey, Nevada, Ohio, Illinois and Montana
The Maryland Lottery and Gaming Control Commission has issued letters to KalshiEX (Kalshi), Robinhood Derivatives (Robinhood) and North American Derivatives, conducting business as Crypto.com, ordering the commodity trading businesses to stop offering sports events contracts.
Maryland Lottery and Gaming informed the three companies that the sports event prediction markets offered via its online platforms are indistinguishable from sports wagering because they are based on the outcomes of sporting events. The existence of these markets “circumvents” Maryland law, which defines sports wagering and permits it to be offered only by licensed operators.
“We view this as a legal matter and a consumer protection matter, and there is also a fiscal interest for the State. Each of Maryland’s legal sports wagering operators completed a rigorous licensing process and is subject to extensive regulations that include responsible gaming requirements,” Maryland Lottery and Gaming Director John Martin said.
“The commodity traders aren’t bound by those same guardrails. They’re conducting sports wagering without a license, and in doing so, they’re avoiding the collection of sports wagering taxes that legal operators pay to the State.”
Maryland has now become the sixth state to issue cease-and-desist letters to at least one of the companies listed, following New Jersey, Nevada, Ohio, Illinois and Montana.
Good to know: Maryland Lottery and Gaming released the state’s casino revenues during March 2025 on April 7, including a total gaming revenue of $172.1m, representing a decrease of 3.4% from the prior year period
Under Maryland law, a gaming activity is illegal unless it is expressly authorized, as sports wagering via licensed operators and fantasy competitions offered by registered operators are the only legally authorized online gaming options available within the state.
The law additionally requires customer age and identity verification to confirm that sports wagering participants are at least 21, as well as geolocation to confirm that participants are physically located in Maryland. Kalshi, Robinhood and Crypto.com currently do not operate under this framework.
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