Maryland election official asks prosecutor to investigate prediction markets

Maryland Elections Administrator Jared DeMarinis has asked the Office of the State Prosecutor to investigate whether prediction market platforms are illegally allowing users to wager on election outcomes.

In a July 23 letter, DeMarinis said platforms are permitting participants to put money on the outcomes of state and local elections, with returns tied to certified results. He wrote that the activity raises "substantial questions" under Maryland law and said his reading of the statute suggests it amounts to prohibited wagering.

Maryland law prohibits wagering on the outcome of elections. According to the report, violations are misdemeanors punishable by fines ranging from $50 to $500, and the state may also seize the total amount of wagers.

The request does not ask prosecutors to pursue people who placed trades or wagers on Maryland elections. Instead, DeMarinis asked for a review of state law and for any appropriate action, including possible clarification of how election law applies to prediction markets.

Platforms including Kalshi and Polymarket let users trade on event outcomes, including political races. Those companies argue users are participating in market trading rather than betting. The Commodity Futures Trading Commission has also pushed back on state efforts to restrict prediction markets, describing the products as "swaps, not wagers."

The dispute matters because it highlights a growing clash between state election or gambling laws and the federal framework claimed by prediction market operators. The article notes that hundreds of thousands of dollars were spent during the primary on Maryland races through sites such as Kalshi and Polymarket.

What happens next is still unclear. The Office of the State Prosecutor could review the law and recommend action if it believes the statute is unclear or has been violated. A key question is whether Maryland moves beyond a legal review and tries to test its election-betting ban against prediction market platforms.

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Source: As reported by newsfromthestates.com.