Questions Raised Over Maryland Gambling Regulator’s Independence Amid AGA Letter Controversy
Controversy Surrounds Maryland Gambling Regulator’s Independence
Documents obtained via a public records request have revealed that the American Gaming Association (AGA), representing commercial casinos, provided Maryland officials with a template letter last April concerning the Commodity Futures Trading Commission (CFTC) and prediction markets. The letter urged the CFTC to prohibit sports-related event contracts offered by platforms like Kalshi and Polymarket.
Concerns Over Maryland Lottery and Gaming Control Agency’s Actions
Shortly after receiving this template, the Maryland Lottery and Gaming Control Agency (MLGCA) sent a cease-and-desist letter to Kalshi, ordering it to stop operating in the state. This official communication closely mirrored much of the language from the AGA’s letter.
Such actions have raised doubts about the MLGCA’s independence. Sean Patrick Maloney, CEO of the Coalition for Prediction Markets, criticized the agency for appearing to act under the influence of casino lobbyists affiliated with the AGA. He referred to the letter as a “smoking gun” that exposes the MLGCA’s lack of autonomy, asserting that the agency should prioritize public interest rather than serving casino industry interests.
Additional emails reviewed by Spotlight on Maryland revealed a message from John Martin, director of the MLGCA, dated April 22, 2025. In it, Martin referenced a “possible action” involving sending a letter to CFTC commissioners, noting that the letter was provided by the AGA.
Maryland’s casino sector is a significant source of tax revenue, benefiting from strong performance, with casinos generating more income this year compared to the previous year. However, the rise of prediction market platforms like Kalshi and Polymarket threatens to divert customers away from casinos, potentially reducing tax revenues for the state.
MLGCA Responds to Independence Allegations
The MLGCA spokesperson defended the agency’s position, stating that its decisions were made independently after careful evaluation of the state’s interests.
John Holden, an Indiana University professor specializing in sports betting regulation, noted that it is common for trade groups such as the AGA to provide draft letters and talking points to government officials. He explained that rapid legal sports betting growth in the U.S. has created a regulatory environment where state agencies like the MLGCA collaborate closely with the casino industry they oversee.
An AGA spokesperson also stood by the letter’s policy, acknowledging that the draft was shared with Maryland officials before submission to the CFTC. They emphasized that Congress intended sports betting regulation to remain at the state and tribal level, and the letter was meant to protect Maryland’s gambling regulations for the benefit of its residents.
Recent Lottery Win in Maryland
In other state gambling news, a Maryland Lottery player recently won a $1 million prize, highlighting ongoing excitement around the state’s gaming opportunities.
