Are Prediction Markets Legal in Maryland?

Maryland is the most actively-litigated mid-sized prediction market state in the United States. The Baltimore Sun reported on April 3, 2026 that "the case focuses specifically on Maryland's ability to block Kalshi from offering sports-event contracts in the state, such as whether the Orioles will win." The Maryland Lottery and Gaming Control Agency has joined the broader multi-state push to bring prediction-market sports contracts under state jurisdiction.

For Maryland residents in April 2026, this means CFTC-regulated platforms remain operational pending the active court action — but the sports-event-contract category is the specific target of state regulatory pressure. Politics, macro, crypto and entertainment markets are not under threat.

Maryland Prediction Market Timeline 2025–2026

• November 2022 — Maryland legalizes online sports betting. DraftKings, FanDuel, BetMGM, Caesars, ESPN BET and Fanatics Sportsbook hold MD mobile licenses. State sports-betting tax rate is 15%.
• February 2025 — Kalshi launches sports event contracts. MD residents have immediate access including Orioles, Ravens, Capitals (DC-adjacent) and Wizards markets.
• September 2025 — Maryland Lottery and Gaming Control Agency sends initial cease-and-desist to Kalshi.
• January 2026 — Maryland files a state-court action seeking injunction against Kalshi sports event contracts.
• April 3, 2026 — Baltimore Sun reports MD court date is set, with the state seeking injunction specifically targeting Orioles, Ravens and other in-state team sports event contracts.
• April 21, 2026 — Court hearing pending. Kalshi and Polymarket continue to accept Maryland addresses for sports contracts; DraftKings Predictions, FanDuel Predicts and Fanatics Markets have voluntarily geofenced MD due to their state sportsbook licenses.

Why Maryland Matters

1. Established legal sportsbook market. Maryland's regulated sportsbook industry generates over $700M annual handle. State has financial interest in protecting that revenue base.
2. Mid-Atlantic regional precedent. A Maryland injunction would influence Virginia, DC, Delaware and Pennsylvania regulatory thinking. The Third Circuit↗ already ruled for Kalshi in NJ; a Maryland Fourth Circuit-bound case would create the most likely circuit split.
3. Orioles + Ravens visibility. Local team contracts get extensive media coverage and have made Maryland a high-profile case.

What Maryland Residents Can Trade Right Now

• Politics, macro, crypto, entertainment, climate: Fully available on Kalshi, Robinhood, Polymarket, OG.com, Sleeper, Rebet.
• Sports event contracts: Available on Kalshi, Robinhood (via Kalshi), Polymarket and OG.com. Geofenced by DraftKings Predictions, FanDuel Predicts, Fanatics Markets.

Best Prediction Market Platforms for Maryland Residents

Kalshi — Primary target of MD state action. Sports + politics + macro + crypto. CFTC Designated Contract Market.

Robinhood — Available statewide. Existing Robinhood users get prediction markets in-app. Routes through Kalshi.

Polymarket US — Strong political and crypto market depth. USDC↗-funded, flat 0.10% taker fee.

OG.com — Sports-forward platform available in MD. Low per-contract fees.

DraftKings Predictions / FanDuel Predicts / Fanatics Markets — Not available in MD due to voluntary geofencing tied to state sportsbook licenses.

Sleeper, Rebet — Available in MD.

Novig, Chalkboard — Not licensed in MD.

Eligibility Checklist for Maryland Residents

• 18+ on CFTC-regulated platforms (MD state sportsbooks: 21+).
• Government ID + SSN for KYC.
• US bank account, debit card, or USDC↗ wallet.

Tax Treatment for Maryland Residents

• Federal: IRC Section 1256 generally applies (60% long-term / 40% short-term capital gains).
• Maryland state: MD state income tax (up to 5.75%) plus county piggyback taxes (up to ~3.2%) apply to taxable gains.
• Not gambling income: MD Comptroller has not issued prediction-market-specific guidance, but federal CFTC classification controls.

Local Sports Angle: Orioles, Ravens, Capitals, Wizards

Maryland fans can currently trade event contracts on the Orioles, Ravens, Capitals (DC-area), Wizards (DC-area), Terrapins (Maryland Big Ten football and basketball) on Kalshi, Robinhood, Polymarket and OG.com. The Baltimore Sun specifically called out Orioles markets in its April 2026 coverage of the state lawsuit. If MD prevails in the pending court action, expect sports-only geofencing similar to what DraftKings Predictions and FanDuel Predicts already do voluntarily.

What Happens Next

1. MD state court ruling: Expected mid-2026. A pro-state ruling would force sports geofencing in MD.
2. Fourth Circuit appellate review: Whichever side loses at the state-court level will appeal into the federal Fourth Circuit, creating a candidate circuit split with the Third Circuit↗'s pro-Kalshi NJ ruling.
3. CFTC counter-suit: The CFTC has sued Massachusetts and Connecticut over similar state actions. MD is a likely next target if state action proceeds.

Sources

• Baltimore Sun: [Maryland has a court date in its legal battle against prediction markets](https://www.baltimoresun.com/2026/04/03/prediction-markets-bets-orioles-court/)
• Holland & Knight: [Federal Appeals Court: CFTC Jurisdiction Over Sports Event Contracts](https://www.hklaw.com/en/insights/publications/2026/04/federal-appeals-court-cftc-jurisdiction-over-sports-event-contracts)
• Reuters: [Betting on the verdict: Kalshi case could shape prediction markets](https://www.reuters.com/legal/litigation/betting-verdict-kalshi-case-could-shape-prediction-markets/)