Maryland gaming regulators have taken steps to prohibit sports event contracts in the state by issuing cease-and-desist notices to Kalshi, Robinhood, and Crypto.com. This move makes Maryland the sixth state to take action against these types of contracts, which are seen as indistinguishable from sports betting.
According to Maryland Lottery and Gaming Director John Martin, the sports event contracts offered by these companies are considered illegal gaming activities as they are based on the outcomes of sports events and do not adhere to the same regulations as licensed sportsbook operators in the state. Properly licensed sports betting operators in Maryland have contributed over $61.2 million in tax revenues.
The Maryland Lottery and Gaming Control Commission has directed the companies to comply with the cease-and-desist notices within 15 days. Other states such as Illinois, New Jersey, Ohio, Montana, and Nevada have also taken similar actions against these markets.
While Michigan and Connecticut are investigating the sports event contract markets, they have not yet taken any official action. KalshiEX, a company involved in these markets, has filed lawsuits against regulatory bodies in New Jersey and Nevada, claiming that they do not have the right to regulate prediction markets.
The issue of sports event contracts has raised concerns about consumer protection, legal matters, and tax revenue in Maryland and other states where these contracts are being offered. The efforts to prohibit these markets are aimed at protecting consumers and ensuring that all gaming activities are conducted in compliance with the law.
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