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Records show casino lobbyists posed as Maryland gaming regulators
Documents obtained through public records show that a powerful casino lobbying group wrote a letter to federal officials on behalf of the Maryland Lottery and Gaming Control Agency.
Last year, Maryland gaming officials sent a letter to the Commodity Futures Trading Commission (CFTC), urging them to take action against prediction markets. However, public records reveal that this letter was actually written by the American Gaming Association (AGA), a high-profile lobbying group for US commercial casinos.
AGA's letter requested a crackdown on Polymarket and Kalshi
The CFTC regulates prediction markets as derivatives, making sites like Polymarket and Kalshi legal on a federal level. These operators allow users to trade contracts on future sporting events.
However, state gaming interests argue that leading prediction sites like Polymarket and Kalshi could be considered unregulated gambling. They believe that these operators should be required to obtain state-level licensing, just like new online casinos, betting sites, and iPoker rooms.
These were the points the Maryland Lottery and Gaming Control Agency sought to make in a letter sent to the CFTC in April 2025. Public records obtained by Spotlight on Maryland have since revealed that the AGA actually wrote the letter, almost word for word. The only changes were to tailor the letter to the state.
Leading prediction market lobbyist questions independence of MD regulators
Sean Patrick Maloney, CEO of the Coalition for Prediction Markets, believes that the letter calls into question who's actually regulating Maryland gaming.
"This is a great example of the fox guarding the henhouse. If you've got casino lobbyists writing the official talking points and letters of Maryland state gaming officials, well, they clearly have no independence," said Maloney.
"You've got a smoking gun. They're clearly taking their marching orders from the casino lobbyists. That's not what the citizens of Maryland deserve. They deserve people doing the public's work, not running errands for casino lobbyists."
Public records show that John Martin, Director of the Maryland Lottery and Gaming Control Agency, emailed fellow employees about a "sample letter" drafted by the AGA that would "be emailed to CFTC commissioners."
Maryland has an interest in protecting its growing gaming industry
A spokesperson for the state's gaming control agency noted that Maryland regulators always act independently when discussing the AGA-written letter.
"Maryland Lottery and Gaming independently evaluated this issue and determined its stance based on what is in the state's best interests," the spokesperson told Spotlight on Maryland. "On April 7, 2025, the agency sent cease-and-desist letters to Kalshi, North American Derivatives (i.e., Crypto.com) and Robinhood regarding their sports prediction markets."
The Old Line State is coming off a record year in tax revenue raised from gaming. It collected $125 million in taxes on retail and sports betting revenue alone. The Maryland Lottery and Gaming Control Agency may have approved the AGA's letter because it has overlapping interests with casino lobbyists.
Maryland could potentially pull in even more tax revenue if it were to regulate online casino games for real money.Â
The state has tried passing bills to regulate real money online slots, blackjack, roulette, and other games. But so far, interested lawmakers have been unsuccessful in bringing the matter to a defining vote.
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