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Kalshi, Robinhood Derivatives, and Crypto.com have been told to shut down their online sports event prediction markets in Maryland. The Maryland Lottery and Gaming Control Commission sent official letters ordering the three companies to stop offering contracts tied to the outcomes of sports events.
According to the Commission, these markets operate like unlicensed sports betting. Since Maryland law only allows sports wagering through licensed operators, offering prediction markets outside that system breaks the rules.
Director John Martin of Maryland Lottery and Gaming made the state’s stance clear. “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,” he said.
He added that the companies in question are bypassing key requirements. “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.”
Under Maryland law, online gaming is only legal if specifically allowed. Currently, only licensed sports betting operators and registered fantasy sports platforms are permitted to offer online gaming services. Operators must also verify customer age and identity, and ensure that users are physically located within the state using geolocation tools. Kalshi, Robinhood Derivatives, and Crypto.com are not operating under this system.
With these actions, Maryland joins five other states—New Jersey, Nevada, Ohio, Illinois, and Montana—that have already issued similar warnings to at least one of the three companies.