Are Prediction Markets Legal in Maryland?

Last verified: 2026-07-15

Restricted Scope: Sports contracts only

Currently blocked — Maryland has an active court order or regulatory action in place

A court order, consent arrangement, or state regulator action is currently limiting some prediction-market contracts in Maryland — usually sports-related ones specifically. This is an active, live restriction, not a hypothetical one.

This is not legal advice. Prediction-market legality is contested and changes quickly. This page reflects publicly reported facts as of the last-verified date above and links to a primary or trade-press source below. Consult a licensed attorney in Maryland and check each platform's own current state-availability page before trading.

What This Means for Kalshi vs. Polymarket in Maryland

The dispute in Maryland is specifically about sports-related contracts (who wins a game, a spread, a player prop) — on both Kalshi and Polymarket. Non-sports contracts (politics, economics, weather, entertainment) from either platform are not the subject of this fight in Maryland. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.

The Full Picture in Maryland

A federal district court denied Kalshi’s request for injunctive relief (Aug. 2025), leaving Maryland free to treat sports contracts as unlicensed betting while the case proceeds. The Fourth Circuit heard oral arguments May 7, 2026 and appeared skeptical of Kalshi’s preemption argument ("this just seems like gambling" — Judge Thacker). No ruling yet.

Source: Law.com — Fourth Circuit oral arguments Last verified: 2026-07-15

Why Is This Even Contested? The Federal-vs-State Fight

Prediction markets sit at the intersection of two legal regimes that currently disagree. Kalshi and Polymarket US register their contracts with the CFTC as swaps or event contracts on a federally designated exchange, and argue that federal law preempts conflicting state gambling law. State gaming regulators counter that sports-related contracts — betting on who wins a game, a point spread, or a player prop — are functionally sports betting, which most states require a separate license to offer. Federal appellate courts are currently split: the Third Circuit ruled for Kalshi on preemption grounds (April 6, 2026), while a federal judge in the Southern District of New York ruled against Kalshi on the same underlying question (July 8, 2026). This is genuinely unresolved law, not a settled "CFTC means legal everywhere" fact — treat any claim that federal registration alone guarantees legality in every state with skepticism.

Dispute is about sports-related event contracts specifically (who wins a game, point spreads, player props). Non-sports event contracts (politics, economics, weather, entertainment) are not the subject of the dispute in this state.

Maryland-Specific Timeline

Entries from our full regulatory timeline that specifically reference Maryland.

2025-08

Massachusetts AG sues Kalshi; Maryland court denies Kalshi’s injunction request

AG Andrea Joy Campbell sues Kalshi in Suffolk Superior Court over unlicensed sports wagering. Separately, a federal court in Maryland denies Kalshi injunctive relief, finding Congress didn’t clearly intend to preempt state gambling law.

Source: Regulatory Oversight — Massachusetts sues Kalshi
2026-05-07

Fourth Circuit hears Maryland oral arguments, appears skeptical of Kalshi

A three-judge Fourth Circuit panel questions whether Kalshi’s contracts are meaningfully different from state-regulated sports wagering. No ruling yet.

Source: Law.com — Fourth Circuit questions Kalshi

Frequently Asked Questions

Is Kalshi legal in Maryland?
A court order, consent arrangement, or state regulator action is currently limiting some prediction-market contracts in Maryland — usually sports-related ones specifically. This is an active, live restriction, not a hypothetical one. A federal district court denied Kalshi’s request for injunctive relief (Aug. 2025), leaving Maryland free to treat sports contracts as unlicensed betting while the case proceeds. The Fourth Circuit heard oral arguments May 7, 2026 and appeared skeptical of Kalshi’s preemption argument ("this just seems like gambling" — Judge Thacker). No ruling yet.
Is Polymarket legal in Maryland?
The same status applies to Polymarket as to Kalshi in Maryland -- state actions in this category virtually always name multiple platforms rather than one exclusively. The dispute in Maryland is specifically about sports-related contracts (who wins a game, a spread, a player prop) — on both Kalshi and Polymarket. Non-sports contracts (politics, economics, weather, entertainment) from either platform are not the subject of this fight in Maryland. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.
Is there a court order blocking prediction markets in Maryland?
A federal district court denied Kalshi’s request for injunctive relief (Aug. 2025), leaving Maryland free to treat sports contracts as unlicensed betting while the case proceeds. The Fourth Circuit heard oral arguments May 7, 2026 and appeared skeptical of Kalshi’s preemption argument ("this just seems like gambling" — Judge Thacker). No ruling yet.
Where can I check the latest prediction market status for Maryland?
This page cites its primary source directly (Law.com — Fourth Circuit oral arguments) and was last verified 2026-07-15. For the full 51-row tracker and the complete regulatory timeline, see the Odds Reference prediction markets legal tracker -- this is a fast-moving area and any single page, including this one, can lag the latest court filing.

Related Reading

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