Prediction Markets
in Maryland
Maryland has active litigation contesting whether CFTC preemption overrides state gaming law: Polymarket QCEX is restricted for Maryland residents while the case proceeds. Mobile sports betting launched in November 2022, and all CFTC-regulated prediction market platforms are accessible without restriction. Maryland's position in the DC corridor (adjacent to Virginia and Washington DC) means its trader base includes a high concentration of policy professionals and federal employees who participate actively in political and economic prediction markets. Note: Maryland has both a state income tax and local/county income taxes: the combined rate is among the higher in the region.
Which platforms work in Maryland?
All categories available in Maryland: sports, economics, politics, weather, and crypto. No state-level restrictions.
Polymarket QCEX is restricted for Maryland residents while state court proceedings are ongoing. Maryland has active litigation contesting CFTC preemption.
Both Mana play-money and Sweepcash real-prize features available in Maryland.
CFTC no-action exemption. US politics-only, $850 per contract cap. Available in Maryland.
All prediction market contracts available: sports, economics, and political event contracts fully accessible in MD.
MD sports betting launched November 2022
Maryland voters approved sports betting in a November 2020 referendum, but the market didn't launch until November 2022: a longer-than-average legislative and licensing process. When it did launch, FanDuel, DraftKings, BetMGM, Caesars, and other major operators went live simultaneously. Maryland has the Ravens (NFL), Orioles (MLB), and a strong college sports following (Maryland Terrapins). The market quickly became one of the most active in the mid-Atlantic region.
CFTC-regulated prediction markets operate alongside Maryland's licensed sportsbooks without regulatory conflict. The Maryland Lottery and Gaming Control Agency oversees sports betting; Kalshi operates under CFTC federal jurisdiction: the same separation that exists in every other open state.
MD traders have full flexibility: FanDuel/DraftKings for NFL, Ravens, Orioles spreads and player props; Kalshi for binary outcome contracts, Fed rate markets, and political event contracts. No regulatory friction between the two frameworks in Maryland.
Maryland's layered tax system for prediction market traders
Important: Maryland has both a state income tax AND a local/county income tax. The combined rate is 7–9% for most Maryland residents: among the highest in the region for prediction market traders.
Maryland's state income tax is graduated: 2% up to $1,000, up to 5.75% above $250,000. Most prediction market traders with meaningful income will be in the 4.75%–5.75% state bracket range.
Maryland counties levy a local income tax: Montgomery County (3.2%), Baltimore City (3.2%), Prince George's County (3.2%), Anne Arundel County (2.81%). This is added to the state rate: combined effective rate of 7–9% for most MD residents.
Combined effective rate comparison: $10,000 prediction market profit
Kalshi issues a 1099-MISC for net profits. Report on your Maryland state return (Form 502) and include local/county income tax on the same return. Sports betting losses are subject to the 2026 OBBBA 90% cap; Kalshi prediction market losses are not (commodity derivatives, not sports wagers).
How Maryland compares in the DC corridor
Virginia
Sports betting legal since 2021. All platforms available. 5.75% state income tax, no local/county add-on: lower combined rate than most Maryland counties.
Mid-AtlanticPennsylvania
Sports betting legal since 2019. All platforms available. Pennsylvania's 3.07% flat income tax is notably lower than Maryland's combined state + county rate.
South comparisonNorth Carolina
Sports betting legal since January 2024. All platforms available. 4.75% flat income tax: lower combined rate than most Maryland counties.