Updated
Updated · CNBC · Aug 11
Maryland Seeks Probe of Election Betting on Prediction Markets as 23 States Ban the Practice
Updated
Updated · CNBC · Aug 11

Maryland Seeks Probe of Election Betting on Prediction Markets as 23 States Ban the Practice

2 articles · Updated · CNBC · Aug 11

Summary

  • Maryland election administrator Jared DeMarinis asked state prosecutors in July to investigate whether prediction-market election contracts violate Maryland’s ban on wagering on elections.
  • A March memo had already warned voters that trading election contracts could break state law, and DeMarinis said Maryland may seek legislative action if current statutes do not clearly cover those trades.
  • Wisconsin sharpened the pressure last month by reminding voters that election betting is illegal under state law and can cost violators their right to vote in that election.
  • Colorado says its election-betting ban includes prediction markets, while New York, Arizona and Tennessee have not given clear public interpretations; Nevada and Michigan already restrict Kalshi and Polymarket through court action.
  • The state moves open a new front in the broader fight over whether election contracts fall under exclusive CFTC authority as federally regulated swaps or under states’ constitutional power to run elections.

Insights

Will federal financial regulators ultimately strip states of their power to ban election betting?
How can prediction platforms survive if a patchwork of state laws treats them as illegal gambling?
Could bragging online about a winning prediction market bet actually cost you your right to vote?