Maryland warns betting operators against prediction markets

• The state has not minced its words about what it thinks about prediction markets, with operators told to stay away
• The MGLCC has cautioned local sports betting operators not to engage with prediction markets, either at home or in other jurisdictions
• Maryland will now test the resolve of companies such as DraftKings and FanDuel that quit Nevada over the same issue

The Maryland gambling regulator has become the latest to issue a warning to licensed operators in the state and warn them against the provision of prediction markets.

The Maryland Lottery and Gaming Control Commission (MLGCC) confirmed that it considered prediction markets to be illegal and would go after any licensed state operator that may provide such products.

MLGCC remains firmly opposed to prediction markets

Maryland and the MLGCC are going a step further, however, warning operators that they may come under fire even if they were to provide prediction markets in other jurisdictions.

This is an interesting clarification and a test to existing operators, including FanDuel and DraftKings, which gave up their Nevada licenses voluntarily as they deem prediction markets to play a more important role in their overall business strategy.

However, neither company openly anticipated that it might face challenges in other jurisdictions, with Maryland being the first to openly state that it might suspend licenses – or at least suggest it – over the provision of prediction markets in other states.

Both FanDuel and DraftKings are also planning to go ahead and launch prediction market platforms, while Fanatics has been in talks with Crypto.com to bring those options to market as well.

Others, though, still appear to be resistant. BetMGM has said that it would not focus on prediction markets. In fact, the company has openly criticized espousing these options and warned against them. This comes at the same time that both DraftKings and FanDuel left the American Gaming Association (AGA) over differences of opinion with the trade body’s leadership.

AGA has been openly criticizing prediction markets and has taken a gung-ho approach, pushing against the segment, prompting the companies’ exit from its member list.

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