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Sub-national
North America

United States - Maryland: gambling regulation and licensing

State of Maryland

Part of United States

  • Online sports bettingRegulated
  • Esports bettingRegulated
  • Online casinoProhibited
  • Online pokerProhibited
  • Daily fantasy sportsRegulated
  • iLotteryMonopoly
  • Prediction marketsProhibited
  • Social casinoProhibited
  • Land-based (reference)Regulated
Regulator
Maryland Lottery and Gaming Control Agency
Headline tax
20% GGR
Licence required
Yes
Last verified
23 Sept 2026

Summary

Maryland licenses online and retail sports wagering and daily fantasy contests, but not online casino or online poker. The Maryland Lottery and Gaming Control Agency and its Commission regulate sports wagering under State Government Article §§ 9-1E-01 to 9-1E-17, enacted in 2021 after voters approved sports betting at the November 2020 referendum. Retail sportsbooks opened in December 2021 and the first seven mobile sportsbooks on 23 November 2022. The law allows up to 60 mobile licences, awarded by the Sports Wagering Application Review Commission and then qualified by the Commission; each costs $500,000 and runs for five years. Eleven mobile platforms took bets in August 2026. Bettors must be 21 and physically in Maryland. Since 1 July 2025 mobile operators pay 20% of taxable proceeds, up from 15%, with 15% going to the Blueprint for Maryland's Future education fund and 5% to the General Fund; retail operators still pay 15%. Taxable proceeds are net of winnings, redeemed promotional credits (capped at 20% of prior-year proceeds) and federal excise tax. In fiscal year 2026 mobile bettors wagered $6.79 billion; operators held $781.8 million before promotional deductions and reported $652.1 million of taxable win, and sports wagering returned $132.3 million to the State. Internet gaming bills failed again in 2026, as did Agency-backed bills to ban sweepstakes-style interactive games and to strengthen enforcement against illegal online gambling, both of which passed the House. The Commission treats sports event contracts on prediction markets as unlicensed sports wagering; Kalshi's challenge awaits a Fourth Circuit decision after argument in May 2026.

Common pitfalls

Treating a sports wagering licence as covering casino games: online casino, poker and bingo are not authorised. Reading the 20% headline rate as applying to retail: facility licensees still pay 15%. Assuming promotional credits are fully deductible: after the first full fiscal year the deduction is capped at 20% of prior-year proceeds. Relying on sweepstakes or prediction market models: the Agency has sent cease-and-desist letters to both.

Key facts

Regulator
Maryland Lottery and Gaming Control Agency (MLGCA)
Regulator type
Sub-national body
Headline tax
20% GGR
Licence required
Yes
Minimum age
21+
Tax base
Taxable proceeds ("taxable win"): the amount wagered less winnings paid, the cash value of prizes, free bets and promotional credits redeemed, and federal excise taxes (§ 9-1E-01(h)). Mobile licensees retain 80% and pay 20%; facility (retail) licensees retain 85% and pay 15% (§ 9-1E-12(b)(1), mobile rate from 1 July 2025 under Chapter 604 of 2025). After a licensee's first full fiscal year, deductible free promotional play is capped at 20% of its prior-year proceeds and any excess is taxed (COMAR 36.10.13.39 F). Payments are monthly; a month in which winnings exceed wagers may be offset against up to the three following months (§ 9-1E-12(d)). The admissions and amusement tax does not apply (§ 9-1E-12(e)). In fiscal year 2026 mobile operators deducted $113.3 million of promotional play.
Capital
Annapolis
Currency
USD
Official languages
English

Licensing

Licence required
Yes
Application window
Capped
Local establishment required
Not yet verified
Local server required
Not yet verified
Licence cap
60
Active licences
11 (as of 31 Aug 2026)
Bank guarantee or bond
Online sports wagering operators must post a $1.5 million performance bond (COMAR 36.10.06). Licensees must hold a reserve in cash, cash equivalents, an irrevocable letter of credit or a surety bond sufficient to pay all winnings (COMAR 36.10.13.40 D); the Agency describes a $500,000 minimum.
Notable licensees
Bally Bet, bet365, BetMGM, betParx, BetRivers, Caesars Sportsbook, DraftKings, Fanatics Sportsbook, FanDuel, LetsBetMD, theScore Bet
Certification requirements
Sports wagering equipment must be supplied by a licensed company and pass testing by an approved independent laboratory before use; geolocation systems must be tested by a Commission-approved laboratory before launch and annually (COMAR 36.10.18.04 E). New facilities must complete two controlled demonstration days.
Barriers to entry
A mobile licence is a two-step process: the Sports Wagering Application Review Commission awards licences through competitive rounds (its round for mobile and Class B applicants accepted applications from 6 September to 21 October 2022), then the Commission must find the awardee qualified by clear and convincing evidence after a background investigation (§§ 9-1E-07(e), 9-1E-15). No open application round was found; HB 1431 (2026), which would have required SWARC to accept applications until 1 January 2028, was not enacted. A mobile licence may be sold only after three years of operation (§ 9-1E-07(i)), and a labour peace agreement is a qualification criterion (§ 9-1E-07(e)(6)(v)). Of the licences awarded, 11 mobile platforms took bets in August 2026; Crab Sports closed on 20 July 2026.

Licence types

  • Mobile sports wagering licence

    Scope
    Online sports wagering with individuals physically located in Maryland (§§ 9-1E-01(e), 9-1E-09(b)). The licensee may run the platform itself or contract with one licensed online sports wagering operator (§ 9-1E-10).
    Term
    5 years (§ 9-1E-06(c))
    Application fee
    $500,000 as of 23 Sept 2026
    Fee basis
    Nonrefundable $500,000 application fee, plus reimbursement of the Commission's background investigation costs before wagering may begin (§ 9-1E-06(b), (d)).
    Renewal terms
    Renewal for five years on payment of a fee equal to 1% of the average annual amount the licensee retained over the preceding three years (§ 9-1E-06(c), as amended by Chapter 604 of 2025).

  • Online sports wagering operator licence

    Scope
    Operating online sports wagering on behalf of one or more mobile licensees (§ 9-1E-10(c)).
    Term
    5 years (§ 9-1E-07(c)(4))
    Application fee
    $25,000 as of 23 Sept 2026
    Fee basis
    Nonrefundable $25,000 application fee and a $1.5 million performance bond (COMAR 36.10.06); the statute sets a floor of $5,000 (§ 9-1E-07(c)(2)(ii)).
    Renewal terms
    $25,000 renewal fee for each operator licence, with a renewed performance bond.

  • Class A-1 sports wagering facility licence

    Scope
    Retail sports wagering by casinos with more than 1,000 VLTs and by owners of NFL, MLB, NHL, NBA or MLS stadiums or franchises (§ 9-1E-06(a)(1)(i)).
    Term
    5 years
    Application fee
    $2,000,000 as of 23 Sept 2026
    Fee basis
    Nonrefundable $2 million; 5% of Class A fees goes to the Sports Wagering Assistance Fund (§ 9-1E-07(d)).
    Renewal terms
    1% of average annual retained proceeds over the preceding three years.

  • Class A-2 sports wagering facility licence

    Scope
    Casinos with 1,000 or fewer VLTs and the Laurel and Pimlico racetracks (§ 9-1E-06(a)(1)(ii)).
    Term
    5 years
    Application fee
    $1,000,000 as of 23 Sept 2026
    Fee basis
    Nonrefundable $1 million (waived for a specified horse racing licensee).
    Renewal terms
    1% of average annual retained proceeds over the preceding three years.

  • Class B-1 and B-2 sports wagering facility licences

    Scope
    Other retail venues: B-2 for businesses with fewer than 25 full-time equivalent employees or under $3 million in annual gross receipts, B-1 for others; up to 30 competitively awarded in addition to the venues named in the law, subject to exclusion zones (§ 9-1E-06(a)).
    Term
    5 years
    Application fee
    $250,000 as of 23 Sept 2026
    Fee basis
    Nonrefundable $250,000 for Class B-1 and $50,000 for Class B-2 (§ 9-1E-06(b)).
    Renewal terms
    1% of average annual retained proceeds over the preceding three years.

  • Sports wagering contractor licence

    Scope
    Suppliers that manage, operate, supply, secure or service sports wagering equipment (§ 9-1E-05(a)(3)).
    Application fee
    $1,500 as of 23 Sept 2026
    Fee basis
    Tier 1: $1,500 application fee, $2,500 licence fee and a $2,000 background investigation deposit; Tier 2: $750, $800 and $2,000 (COMAR 36.10.06).

  • Fantasy competition operator registration

    Scope
    Offering online fantasy competitions to players in Maryland (§ 9-1D-03).
    Term
    1 year
    Fee basis
    The Commission may impose a registration fee; 15% of proceeds is payable (§§ 9-1D-03, 9-1D-04).
    Renewal terms
    Annual renewal.

Taxation

Headline GGR tax
20% GGR
Effective date
1 Jul 2025
Player winnings tax
Gambling winnings, including from sports betting, are fully taxable federal income, and losses are deductible only by itemising, up to reported winnings (IRS Topic 419). Winnings are also subject to Maryland income tax at 2% to 6.5% (§ 10-105(a)).
Withholding mechanism
On wagering winnings in Maryland that are subject to federal withholding under IRC § 3402 (§ 10-905(c)(3)), the payer withholds Maryland tax at 3% plus the top marginal State rate for residents, currently 9.5% (3% plus 6.5%), and for nonresidents at the § 10-106.1 rate plus the top marginal rate (§ 10-908(d)). Payers issue federal Form W-2G for reportable winnings.
Tax base
Taxable proceeds ("taxable win"): the amount wagered less winnings paid, the cash value of prizes, free bets and promotional credits redeemed, and federal excise taxes (§ 9-1E-01(h)). Mobile licensees retain 80% and pay 20%; facility (retail) licensees retain 85% and pay 15% (§ 9-1E-12(b)(1), mobile rate from 1 July 2025 under Chapter 604 of 2025). After a licensee's first full fiscal year, deductible free promotional play is capped at 20% of its prior-year proceeds and any excess is taxed (COMAR 36.10.13.39 F). Payments are monthly; a month in which winnings exceed wagers may be offset against up to the three following months (§ 9-1E-12(d)). The admissions and amusement tax does not apply (§ 9-1E-12(e)). In fiscal year 2026 mobile operators deducted $113.3 million of promotional play.

Earmarked levies

  • Blueprint for Maryland's Future Fund: 15% of taxable proceeds (retail and mobile) (Blueprint for Maryland's Future Fund for public education (§ 9-1E-12(b)(2)(i)); $99.7 million in fiscal year 2026.)
  • General Fund share of mobile proceeds: 5% of mobile taxable proceeds, from fiscal year 2026 (State General Fund (§ 9-1E-12(b)(2)(ii)); $32.6 million in fiscal year 2026.)
  • Unclaimed winnings: Winnings unclaimed 182 days after the wager is won (Problem Gambling Fund in the Maryland Department of Health (§§ 9-1E-12(c), 9-1A-33).)
  • Fantasy competition proceeds: 15% of fantasy competition proceeds (Blueprint for Maryland's Future Fund (§ 9-1D-04).)
  • Table games proceeds (land-based reference): 20% of table game proceeds (the licensee retains 80%) (15% to the Education Trust Fund and 5% to the local jurisdiction (§ 9-1A-27(d)).)

Compliance

Minimum age
21+
KYC timing
At account creation. For every deposit and withdrawal the licensee checks whether the information is inconsistent, unverified or in breach of its terms; if so it must ask for more information within 24 hours and, failing verification, suspend the account, bar wagering, surrender winnings to the Commission for the problem gambling fund, refund deposits and deactivate the account (COMAR 36.10.18.05 E).
AML regime
A licensee with at least $1 million in annual gross revenue is a "gaming establishment" for the federal Bank Secrecy Act (§ 9-1E-01(c)). Licensees must promptly report to the Commission suspicious or illegal wagering, including funds derived from illegal activity, laundering, use of agents and false identification (§ 9-1E-11(c)(1)(iv)).
AML supervisor
Federal Bank Secrecy Act regime, with suspicious wagering also reported to the Commission
Deposit limits
Platforms must let bettors set daily, weekly and monthly deposit limits; increases take effect only after the current limit period expires (COMAR 36.10.14.04 A(1), C).
Loss limits
Bettors can set daily, weekly or monthly loss limits that block further wagers for the rest of the period (COMAR 36.10.14.04 A(2)).
Session limits
Bettors can set a daily time limit measured from login to logout and a temporary suspension for a chosen number of days; decreases to time limits apply no later than the next login (COMAR 36.10.14.04 A(5), A(6), D).
Data localisation
All wagers must be initiated, received and otherwise made within the State unless the Commission determines otherwise; intermediate routing of data outside Maryland does not change where a wager is made (§ 9-1E-13).
KYC requirements
Only registered bettors may bet online; registration is in person at a licensed facility or online through an approved app (§ 9-1E-09(c)). The licensee records and keeps for five years the bettor's legal name, date of birth, residential address, phone number, email, Social Security number (or an approved equivalent), confirmation that the bettor may wager, and the source of identity authentication, such as a government ID number or approved remote multi-source authentication (COMAR 36.10.18.05 B, C). Identity must be verified through secure online databases and age verification must block under-21s (COMAR 36.10.16.05). Multi-factor authentication is mandatory for all accounts (COMAR 36.10.18.05 F).
Stake limits
Bettors can set wager limits per day, week or month and a maximum single wager (COMAR 36.10.14.04 A(3), A(4)). No licensee may accept more than $5 million from one patron on one sporting event (COMAR 36.10.14.01 D).
Mandatory player messaging
Websites must carry banners with the Commission's gambling assistance message and the underage warning "No bettor under the age of 21 is permitted to participate in sports wagering" (COMAR 36.10.10.03 B). Platforms must describe the consequences for underage or out-of-state bettors (§ 9-1E-11(b)(2)). Each licensee must file a responsible gaming plan before launch and annually (COMAR 36.10.10.02).
Reporting obligations
Prompt reports to the Commission of criminal or disciplinary proceedings, abnormal betting patterns, match fixing and suspicious wagering (§ 9-1E-11(c)); annual report by 1 July on minority and women ownership, employment and contracting (§ 9-1E-14(a)); quarterly promotional play reports and an annual promotional play report within 90 days of fiscal year end (COMAR 36.10.13.39 D, G); promotion terms filed at least two days before launch (COMAR 36.10.13.41 B). Sports wagering data must be kept securely for at least five years (§ 9-1E-03(c)).
Game content restrictions
Only events and wager types in the Commission's approved catalogue may be offered (COMAR 36.10.14.01, .02). No wagering on high school events or, unless approved, other amateur events (§ 9-1E-01(i)(2); COMAR 36.10.14.03). Esports only where every participant is at least 18. Interested parties may ask the Commission to ban a type of wager after a public hearing (§ 9-1E-11(e)).

Minimum age by vertical

  • Online sports betting: 21+

Advertising

Advertising permitted
Yes
Affiliate rules
The licensee is responsible for the terms and conduct of promotions offered on its behalf by a sports wagering contractor or marketing affiliate vendor, which must also link to the terms (COMAR 36.10.13.41 C). Vendors that are not licensed as contractors are registered or certified by the Agency according to the annual value of their business with licensees (COMAR 36.10.06.11).
Celebrity and influencer rules
Advertising may not use or depict anyone who is, or appears to be, under 21 (COMAR 36.10.01.02, predatory marketing practice). The Commission licenses independent evaluators that rate the predictions of sports wagering experts, influencers and content partners, and a licensee that advertises in Maryland may contract with one; evaluators and their staff may not bet (§ 9-1E-17; COMAR 36.10.06).
Social media rules
On websites and social media profiles the gambling assistance message must appear on each page and on any gaming advertisement, at least the size of most of the text on the page (COMAR 36.10.10.03 B(11)(d)).
Bonus advertising rules
Promotional play may not be awarded as cashable credit, and promotional play of $5,000 or more a day to one bettor needs senior approval (COMAR 36.10.13.39 A, B). Promotion terms must set out eligibility, wagering requirements, restrictions on withdrawal and cancellation rules in plain language (COMAR 36.10.13.41 B, C).
Mandatory warnings
The Commission-approved gambling assistance message on all advertisements, and the underage warning "No bettor under the age of 21 is permitted to participate in sports wagering" on websites and at facility entrances (COMAR 36.10.10.03). Promotion terms must state "If you or someone you know has a gambling problem, help is available. Call 1-800-GAMBLER." (COMAR 36.10.13.41 B(13)).
Penalties for breach
Advertising breaches are violations of the Sports Wagering Law and regulations, punishable by reprimand, a fine of up to $5,000 per violation with each day a separate violation, or suspension or revocation of the licence (§ 9-1E-08).

Restrictions

  • Licensees may not target advertising at people prohibited from wagering or other at-risk individuals, and may not engage in false or deceptive advertising (§ 9-1E-03(c)(2)).
  • Predatory marketing is prohibited: advertising or promotions that are false or deceptive, knowingly directed at under-21s or excluded individuals, that use anyone who is or appears to be under 21, that obscure material conditions, or that omit or obscure the gambling assistance message (COMAR 36.10.13.43; 36.10.01.02).
  • Every advertisement intended to encourage sports wagering must carry the gambling assistance message, with minimum sizes: print at least the size of most of the text or 3% of the height or width, billboards 5%, and on video and television on screen throughout at 3% and on the final screen for the last 3 seconds (COMAR 36.10.10.03 B).
  • Advertising for sports wagering must not suggest an outcome is guaranteed or without risk (COMAR 36.10.10.03 B(10); 36.10.13.41 C).
  • Terms of every promotion must be filed with the Commission at least two days before launch, include the 1-800-GAMBLER statement, be linked from the licensee's and affiliates' websites, and give bettors a way to cancel; licensees may not cap winnings once a promotion's terms are met (COMAR 36.10.13.41 B, C).
  • Agency staff may order a licensee to stop a promotion immediately if it may adversely affect the public or the integrity of sports wagering (COMAR 36.10.13.41 C(3)).
  • Colleges and sports marketing entities may not take commissions or bonuses based on signing up students for sports wagering, and such contracts are barred for licensees (COMAR 36.10.13.41 D).
  • Online casino, poker and other unlicensed gaming may not be lawfully offered in Maryland, so only sports wagering and registered fantasy competitions can be promoted to Maryland players.

Payments

Credit card ban
No
Crypto stance
Not yet verified
Permitted methods
Debit cards and prepaid cards, ACH transfers, where the licensee has approved fraud controls, Cash, cash equivalents, personal cheques and wire transfers made with the licensee, Winning tickets deposited at an approved facility, Promotional or bonus credit, Credit cards, at the online licensee's option, with a cash-advance acknowledgement, Other methods approved by the Commission
Withdrawal timeframe rules
A withdrawal request must be honoured by the later of 5 days after the request or 5 days after any required tax paperwork, subject to a reasonable investigation period for suspected fraud (COMAR 36.10.13.40 E(5)). Player funds are held in trust in a segregated account or a special-purpose account controlled by an independent entity (COMAR 36.10.13.40 C). Winnings on a closed account are paid within 7 days, and accounts unclaimed for 3 years are presumed abandoned (COMAR 36.10.13.40 F, H).
Currency restrictions
Licensees may not extend credit or accept deposits derived from credit extended by an affiliate or agent, and accounts may not go negative (COMAR 36.10.14.05 C, D). Online platforms may not accept cards issued by the Department of Human Services for temporary cash assistance (COMAR 36.10.13.41 A(2)).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Administrative penalties
Denial, reprimand, a fine of up to $5,000 per violation (each day a separate violation), or suspension or revocation of a sports wagering licence, weighing seriousness, harm and good faith (§ 9-1E-08). Most matters are settled by consent agreements approved by the Commission, which waive review (COMAR 36.10.08.05).
Criminal penalties
Bookmaking or keeping premises for betting: misdemeanour, up to 6 months and $5,000 (Criminal Law § 12-102). Keeping gaming devices or gambling premises: misdemeanour, 6 months to 1 year and up to $500 (§ 12-104). False statements in a licence application: misdemeanour, up to 3 years and $5,000 (§ 9-1E-07(h)).
Operator liability
Mobile licensees remain responsible for their online operator partners and for promotions run on their behalf by contractors and marketing affiliates (COMAR 36.10.13.41 C). The Commission has told licensees that involvement in unlicensed sporting event contracts, directly or through affiliates, may bear on their suitability (19 November 2025 notification).
Player liability
No player offence for placing a wager with an unlicensed operator was found in the provisions reviewed. Voluntarily excluded individuals found on a sports wagering floor may face trespass charges (COMAR 36.10.10.01 E), and prizes withheld from excluded individuals go to the Problem Gambling Fund.

Notable actions

  • Illegal online gaming operators (89 cease-and-desist letters)13 Aug 2026

    By 13 August 2026 the Agency and the Office of the Attorney General had issued 89 cease-and-desist letters: 24 operators withdrew or modified their games, 16 refused, and 49 did not respond. Recipients include offshore sportsbooks and casinos, sweepstakes casinos and prediction markets.

  • Polymarket (QCX LLC and affiliates), Kalshi, Robinhood, Coinbase Financial Markets and Webull13 Aug 2026

    City of Baltimore consumer protection suits alleging unlicensed sports wagering through prediction markets; removed to federal court in August 2026 and pending.

  • Crown MD Online Gaming LLC d/b/a DraftKings26 Feb 2026

    Consent agreements for self-reported mobile sports wagering violations in August 2025 ($4,000) and September 2025 ($2,000), put to the Commission on 26 February 2026; no admission.

    Fine: $6,000 as of 26 Feb 2026

  • Caesars Entertainment, Inc. (Caesars Sportsbook)22 Jan 2026

    Consent agreement for August 2025 mobile sports wagering violations, put to the Commission on 22 January 2026.

    Fine: $1,000 as of 22 Jan 2026

  • PPE Maryland Mobile (Live!) and FanDuel Sportsbook18 Dec 2025

    Consent agreement for June 2025 mobile sports wagering violations, put to the Commission on 18 December 2025.

    Fine: $8,000 as of 18 Dec 2025

  • Bally's Interactive (Bally Bet)18 Dec 2025

    Consent agreement for July 2025 mobile sports wagering violations, put to the Commission on 18 December 2025.

    Fine: $2,000 as of 18 Dec 2025

  • BetMGM20 Nov 2025

    Consent agreement for June 2025 mobile sports wagering violations, put to the Commission on 20 November 2025.

    Fine: $12,500 as of 20 Nov 2025

  • KalshiEX LLC7 Apr 2025

    Cease-and-desist notice ordering Kalshi to stop offering sports event contracts in Maryland; Kalshi sued, lost its preliminary injunction motion on 1 August 2025 and appealed.

Market data

Figures on this record are drawn from official regulator data.

Online GGR
$781,848,025 as of 30 Jun 2026
Reporting year
2026
Year-on-year growth
13.7%
Licensed operators
12

GGR by vertical

  • Online sports betting: $781,848,025 as of 30 Jun 2026

Timeline

  1. 3 Nov 2020

    Maryland voters approve legalised sports wagering at a referendum

  2. 18 May 2021

    Governor Hogan signs HB 940 (Chapter 356 of 2021), the Sports Wagering Law

  3. 9 Dec 2021

    MGM National Harbor opens the first retail sportsbook

  4. 13 Jan 2022

    Sports wagering regulations (COMAR 36.10) take permanent effect

  5. 23 Nov 2022

    First seven mobile sportsbooks launch

  6. 7 Apr 2025

    Commission orders Kalshi to cease and desist from offering sports event contracts

  7. 20 May 2025

    Chapter 604 of 2025 signed, raising the mobile rate from 15% to 20% from 1 July 2025

  8. 1 Aug 2025

    District Court denies Kalshi a preliminary injunction against Maryland regulators

  9. 30 Aug 2025

    bet365 licensed as online operator for Riverboat on the Potomac, bringing the number of mobile sportsbooks operating to 12

  10. 19 Nov 2025

    Commission warns all licensees that sporting event contracts offered without a Maryland licence are illegal

  11. 20 Mar 2026

    House passes HB 295, the interactive games (sweepstakes) ban, 105-24; it later dies in the Senate

  12. 7 May 2026

    Fourth Circuit hears argument in KalshiEX v. Martin

  13. 10 Jul 2026

    Agency reports $132.3 million from sports wagering for fiscal year 2026, up 48.8%

  14. 20 Jul 2026

    Crab Sports mobile licence closes, leaving 11 mobile platforms

  15. 13 Aug 2026

    City of Baltimore sues Polymarket, Kalshi and other prediction market platforms

Outlook

The Fourth Circuit's decision in KalshiEX v. Martin, argued on 7 May 2026, will decide whether Maryland can apply its sports wagering licence requirement to sports event contracts on CFTC-registered exchanges; the City of Baltimore's consumer protection suits against Polymarket, Kalshi and others, removed to federal court in August 2026, raise the same question. The Agency's bills to prohibit sweepstakes-style interactive games (HB 295) and the House-passed Illegal Online Gambling Enforcement Act (HB 1226) died in the Senate in 2026 and may be reintroduced. Internet gaming would need both a statute and voter approval at a referendum; the 2026 bills (HB 1343, SB 885, HB 1255) did not leave committee. The Commission must report on the fiscal year 2026 sports wagering market to the Governor and General Assembly by 1 December 2026 (§ 9-1E-14(b)), and monthly Agency reports will show whether fiscal year 2027 handle, up 20.5% after two months, holds.

Frequently asked questions

Is online casino legal in Maryland?
No. Only licensed sports wagering and registered fantasy competitions are legal online. Internet gaming bills were not enacted in 2025 or 2026, and any authorisation would also need voter approval at a referendum.
What is the sports betting tax rate?
Mobile operators pay 20% of taxable proceeds (15% to the Blueprint for Maryland's Future Fund and 5% to the General Fund) since 1 July 2025; retail sportsbooks pay 15%. Redeemed promotional credits are deductible up to 20% of the licensee's prior-year proceeds.
How does an operator get a mobile licence?
The Sports Wagering Application Review Commission awards mobile licences in competitive rounds and the Commission must then find the applicant qualified after a background investigation. The fee is $500,000 for five years, and at most 60 may be issued. No application round is open; a technology provider can instead be licensed as an online sports wagering operator partnering an existing licensee ($25,000 fee and a $1.5 million bond).
Can prediction markets offer sports contracts in Maryland?
The Commission says no: sports event contracts offered without a Maryland sports wagering licence are illegal sports wagering. A federal District Court refused Kalshi an injunction in August 2025, and the Fourth Circuit appeal argued in May 2026 is undecided.
How big is the market?
In fiscal year 2026 (July 2025 to June 2026) mobile bettors wagered $6.79 billion and operators held $781.8 million, 13.7% more than in fiscal year 2025; taxable win was $652.1 million and sports wagering contributed $132.3 million to the State.
Can bettors fund accounts with credit cards?
Online licensees may accept credit cards if the bettor acknowledges the transaction may be treated as a cash advance. Licensees may not extend credit themselves, and retail sportsbooks may not accept credit cards for wagers.

iGT coverage of United States - Maryland

Sports betting app cash football
Sports Betting

Maine Has No Rule on AI in Gambling, and Its Draft Online Casino Code Does Not Add One

Maine's regulator says it is monitoring the use of AI "locally and nationally" after the New York Times report on DraftKings, which takes about four in every five dollars bet with the state's mobile sportsbooks. Its draft rules for online casino, the product at the centre of the Times investigation, are open for comment until 30 October.

Former Mansion Bet CEO Hit With Custodial Sentence in Ongoing Legal Battle
Prediction Markets

Nevada Calls Kalshi's Bid to Wait for the CFTC "Just Another Attempt at Delay"

Kalshi has asked the Ninth Circuit to hold its rehearing petition until the CFTC rewrites its rule on gaming contracts, which the agency says will be final within two months. Nevada's answer is that the court already knew the rule was changing, and that the panel's ruling never depended on it.

Ninth Circuit Rules Kalshi's Sports Contracts Are Not Swaps in 3-0 Nevada Win
Prediction Markets

Sixth Circuit Rules 3-0 That Ohio and Tennessee Can Enforce Gambling Law Against Kalshi

A unanimous panel has held that Kalshi's sports contracts are not swaps, and that federal commodities law would not shield them from state gambling law even if they were. It is the second federal appeals court in a month to side with the states, leaving Kalshi with one win in three circuits as the Supreme Court weighs whether to take the question.

Sources

  1. Annotated Code of Maryland, State Government Article, § 9-1E-01: Sports wagering definitions (proceeds, sporting event, sports wagering, gaming establishment)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  2. Annotated Code of Maryland, State Government Article, § 9-1E-03: Authority of sports wagering licensees; data security and advertising duties

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  3. Annotated Code of Maryland, State Government Article, § 9-1E-04: Regulation of sports wagering by the Commission

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  4. Annotated Code of Maryland, State Government Article, § 9-1E-05: Persons required to be licensed

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  5. Annotated Code of Maryland, State Government Article, § 9-1E-06: Classes of sports wagering licence, application fees, term and renewal

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  6. Annotated Code of Maryland, State Government Article, § 9-1E-07: Applications, qualification, fee distribution, false statements and licence transfers

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  7. Annotated Code of Maryland, State Government Article, § 9-1E-08: Denial, reprimand, fines, suspension and revocation

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  8. Annotated Code of Maryland, State Government Article, § 9-1E-09: Where facility and mobile licensees may accept wagers; registration

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  9. Annotated Code of Maryland, State Government Article, § 9-1E-10: Mobile licensees and online sports wagering operators

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  10. Annotated Code of Maryland, State Government Article, § 9-1E-11: Prohibited bettors, age and geolocation duties, integrity reporting

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  11. Annotated Code of Maryland, State Government Article, § 9-1E-12: Distribution of sports wagering proceeds (tax), unclaimed winnings, carry-forward of losses

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  12. Annotated Code of Maryland, State Government Article, § 9-1E-13: Intrastate wagering and routing

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  13. Annotated Code of Maryland, State Government Article, § 9-1E-14: Reports by licensees and by the Commission

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  14. Annotated Code of Maryland, State Government Article, § 9-1E-15: Sports Wagering Application Review Commission

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  15. Annotated Code of Maryland, State Government Article, § 9-1E-16: Small, Minority-Owned, and Women-Owned Business Sports Wagering Assistance Fund

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  16. Annotated Code of Maryland, State Government Article, § 9-1E-17: Independent evaluators of sports wagering content

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  17. Annotated Code of Maryland, State Government Article, §§ 9-1D-01 to 9-1D-05: Fantasy competitions (definition, exemption from gambling prohibitions, registration, 15% of proceeds to the Blueprint Fund)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  18. Annotated Code of Maryland, State Government Article, § 9-1A-27: Distribution of video lottery terminal and table game proceeds

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  19. Annotated Code of Maryland, State Government Article, § 9-1A-33: Problem Gambling Fund

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  20. Annotated Code of Maryland, State Government Article, § 9-111: State lottery: internet sales prohibited except subscriptions

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  21. Annotated Code of Maryland, Criminal Law Article, § 12-102: Betting, wagering, gambling, and making books or pools prohibited

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  22. Annotated Code of Maryland, Criminal Law Article, § 12-104: Gaming devices and gambling premises prohibited

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  23. Annotated Code of Maryland, Criminal Law Article, § 12-113: Liberal construction; Commission decision final on lawful gaming

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  24. Annotated Code of Maryland, Tax-General Article, § 10-105: State income tax rates for individuals

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  25. Annotated Code of Maryland, Tax-General Article, § 10-905: Definitions for withholding (payment of winnings derived from wagering)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  26. Annotated Code of Maryland, Tax-General Article, § 10-908: Withholding, including on wagering winnings

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  27. Topic no. 419, Gambling income and losses

    Internal Revenue Service

    Tier 1Accessed 23 Sept 2026
  28. HB 352 (2025): Budget Reconciliation and Financing Act of 2025, bill history (approved by the Governor 20 May 2025, Chapter 604)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  29. Chapter 604 of the Laws of Maryland 2025 (HB 352), amending §§ 9-1E-06(c) and 9-1E-12(b)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026Published 20 May 2025
  30. Chapter 340 of the Laws of Maryland 2025 (HB 618): State Lottery, Internet Sales of Subscription Plans, Authorization

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  31. 2021 Regular Session house bill index (HB 940, Chapter 356: Regulation of Fantasy Gaming Competitions and Implementation of Sports Wagering)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  32. 2023 Regular Session senate bill index (SB 621, Chapter 638: independent evaluation of sports wagering content; SB 620, Chapter 701: institutions of higher education sports wagering contracts)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  33. 2025 Regular Session house bill index (HB 17, Internet Gaming, Authorization and Implementation: no chapter)

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  34. HB 295 (2026): Gaming, Prohibition on Interactive Games and Revenue From Illegal Markets, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  35. Fiscal and Policy Note (Third Reader, Revised), HB 295 (2026)

    Maryland General Assembly (Department of Legislative Services)

    Tier 2Accessed 23 Sept 2026
  36. HB 1226 (2026): Maryland Illegal Online Gambling Enforcement Act, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  37. HB 1343 (2026): Internet Gaming, Authorization and Implementation, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  38. Fiscal and Policy Note, HB 1343 (2026): Internet Gaming, Authorization and Implementation

    Maryland General Assembly (Department of Legislative Services)

    Tier 2Accessed 23 Sept 2026
  39. SB 885 (2026): Internet Gaming and Online Bingo, Authorization and Implementation, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  40. HB 1255 (2026): Expansion of Commercial Gaming, Internet Gaming Referendum, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  41. HB 291 (2026): Sports Wagering Proceeds, Promotional Play Exclusion, Limitation, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  42. Fiscal and Policy Note, HB 291 (2026)

    Maryland General Assembly (Department of Legislative Services)

    Tier 2Accessed 23 Sept 2026
  43. HB 1431 (2026): Sports Wagering, Licenses, Application Period, bill history

    Maryland General Assembly (Department of Legislative Services)

    Tier 1Accessed 23 Sept 2026
  44. COMAR 36.01.03.02: Application for placement on the Commission's Voluntary Exclusion List

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  45. COMAR 36.10.01: Sports wagering, general provisions and definitions

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  46. COMAR 36.10.06: Specific requirements for other licences required for sports wagering (operators, contractors, employees, vendors, independent evaluators)

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  47. COMAR 36.10.10: Enforcement of voluntary exclusion program; responsible gaming plan; advertising requirements

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  48. COMAR 36.10.13: Sports wagering licensee minimum internal control standards (credit, promotional play, security of funds, consumer protection, predatory marketing, age)

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  49. COMAR 36.10.14: Sports wagering requirements and limitations (authorised and prohibited wagers, responsible wagering limits, funding)

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  50. COMAR 36.10.16: Wagering using online, web-based or mobile applications (geolocation, age verification)

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  51. COMAR 36.10.18: Sports wagering technical standards (geolocation systems, bettor accounts)

    Maryland Division of State Documents (Code of Maryland Regulations)

    Tier 1Accessed 23 Sept 2026
  52. Maryland Lottery and Gaming, official website

    Maryland Lottery and Gaming Control Agency

    Tier 1Accessed 23 Sept 2026
  53. Maryland Sports Wagering: law, regulations, licensees and FAQ

    Maryland Lottery and Gaming Control Agency

    Tier 1Accessed 23 Sept 2026
  54. Current sports wagering licensees and operator partners (last updated 14 September 2026)

    Maryland Lottery and Gaming Control Agency

    Tier 1Accessed 23 Sept 2026Published 14 Sept 2026
  55. Legal vs. Illegal Online Gaming: licensed operators and cease-and-desist letters

    Maryland Lottery and Gaming Control Agency

    The page lists Crab Sports among licensed online operators, but the licensee list updated 14 September 2026 records the Crab Sports mobile licence as closed on 20 July 2026 and Crab Sports took no handle in August 2026. The record follows the licensee list and the August data.

    Tier 1Accessed 23 Sept 2026
  56. Agency Timeline: Maryland Lottery and Gaming Control Agency history and milestones

    Maryland Lottery and Gaming Control Agency

    Tier 1Accessed 23 Sept 2026
  57. Responsible Gambling: helpline and Voluntary Exclusion Program

    Maryland Lottery and Gaming Control Agency

    Tier 1Accessed 23 Sept 2026
  58. Sports Wagering Revenue Reports: fiscal year to date and cumulative contributions

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026
  59. Sports Wagering Contributes $7.6 Million to the State During June 2026 (FY2026 totals)

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026Published 10 Jul 2026
  60. June 2026 sports wagering data by licensee, with fiscal year 2026 totals (Excel)

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026Published 10 Jul 2026
  61. Sports Wagering Contributes $9.2 Million to the State During June 2025 (FY2025 totals)

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026
  62. June 2025 sports wagering data by licensee, with fiscal year 2025 totals (Excel)

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026
  63. August 2026 sports wagering data by licensee (Excel)

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026Published 10 Sept 2026
  64. bet365 Launches Mobile Sports Wagering Platform in Maryland

    Maryland Lottery and Gaming Control Agency

    Tier 1Accessed 23 Sept 2026Published 30 Aug 2025
  65. Notice to Cease and Desist to KalshiEX LLC, 7 April 2025

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026Published 7 Apr 2025
  66. Notification: Involvement in Prediction Markets, Sporting Event Contracts, to all licensees, 19 November 2025

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026Published 19 Nov 2025
  67. Managing Director of Gaming report to the Commission, August 2026 (voluntary exclusion and illegal online gaming figures)

    Maryland Lottery and Gaming Control Agency

    Tier 2Accessed 23 Sept 2026
  68. Commission Meeting, 20 November 2025: agenda and documents

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  69. Commission Meeting, 18 December 2025: agenda and documents

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  70. Commission Meeting, 22 January 2026: agenda and documents

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  71. Commission Meeting, 26 February 2026: agenda and documents

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  72. Consent Agreement, BetMGM, June 2025 mobile sports wagering violations

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  73. Consent Agreement, PPE Maryland Mobile (Live!) and FanDuel Sportsbook, June 2025 mobile sports wagering violations

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  74. Consent Agreement, Bally's Interactive, July 2025 mobile sports wagering violations

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  75. Consent Agreement, Caesars (American Wagering), August 2025 mobile sports wagering violations

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  76. Consent Agreement, Crown MD Online Gaming LLC d/b/a DraftKings, August 2025 mobile sports wagering violations

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  77. Consent Agreement, Crown MD Online Gaming LLC d/b/a DraftKings, September 2025 mobile sports wagering violations

    Maryland Lottery and Gaming Control Commission

    Tier 1Accessed 23 Sept 2026
  78. KalshiEX LLC v. Martin, No. 25-cv-1283-ABA (D. Md.), Memorandum Opinion denying preliminary injunction, 1 August 2025

    United States District Court for the District of Maryland

    Tier 1Accessed 23 Sept 2026Published 1 Aug 2025
  79. KalshiEX LLC v. Martin, No. 25-1892 (4th Cir.), docket (oral argument 7 May 2026)

    CourtListener (Free Law Project), court record

    Tier 1Accessed 23 Sept 2026
  80. City of Baltimore v. QCX LLC, Blockratize Inc. and QC Tech LLC, complaint filed in the Circuit Court for Baltimore City (C-24-CV-26-005535), removed to D. Md. as No. 1:26-cv-03253

    Circuit Court for Baltimore City / United States District Court for the District of Maryland

    Tier 1Accessed 23 Sept 2026Published 13 Aug 2026
  81. City of Baltimore v. KalshiEX LLC et al., No. 1:26-cv-03217 (D. Md.), notice of removal from the Circuit Court for Baltimore City (C-24-CV-26-005532)

    CourtListener (Free Law Project), court record

    Tier 1Accessed 23 Sept 2026Published 14 Aug 2026

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This page is industry reference information and not legal advice.

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