Is crypto sports betting legal in Maryland?

What's legal

Maryland voters approved sports betting in November 2020, and the state's licensee list shows the first retail sportsbooks opening in December 2021 and the first mobile licensees launching on November 23, 2022. The state's rules require licensees to block anyone under 21 (COMAR 36.10.16.05), and you must be physically in Maryland to bet on an app.

Maryland Lottery and Gaming, which staffs the Maryland Lottery and Gaming Control Commission, keeps a public list of licensed sportsbooks and the companies running them (the version we checked was dated September 14, 2026). It covers casino sportsbooks, stadium and OTB locations, and mobile licensees partnered with operators such as BetMGM, Caesars, DraftKings, FanDuel, Fanatics, Bet365, Betfred, Parx and Bally's. By the agency's account, a Marylander can legally gamble online in two ways only: with a licensed sportsbook or in a registered fantasy contest.

Retail betting takes place at the state's six casinos and at the other licensed sites on the agency's list. Section 9-1E-01 of the State Government Article covers professional, college, Olympic and international events, sanctioned motor races, and esports with participants 18 or older. High school events and fantasy competitions are excluded.

How betting works here

Section 9-1E-11 bars anyone under 21 or outside Maryland from betting. Mobile licensees must run age verification, which can include a third-party identity check, and must use geolocation to confirm where you are. A bettor who is underage or out of state can have the account closed and winnings forfeited.

The same section bars athletes, coaches, referees, sports governing entity employees, operator employees, and anyone on the Commission's exclusion lists. The statute does not name payment methods, so each sportsbook sets its own. A winning wager nobody claims within 182 days becomes state property and goes to the Problem Gambling Fund (section 9-1E-12(c)).

Crypto and offshore sites

Licensed Maryland apps fund accounts with cards, bank transfers and similar methods, and the major brands do not take crypto. If you hold crypto, you would normally sell it for dollars before you fund an account, and that sale can be taxable by itself.

Offshore crypto sportsbooks have no Maryland license. They are not licensed in any US state, so no state regulator stands behind your balance or your payout. Maryland Lottery and Gaming posts the cease-and-desist letters it has sent to online operators it believes are illegal. The posted letters include ones to sportsbooks such as BetUS, BetAnySports and BetNow.eu, sent in 2025, and the agency notes the list is not complete.

Maryland Lottery and Gaming tells people to report illegal online gaming to a State's Attorney or to local or state police, and also points to the FTC and the FBI's Internet Crime Complaint Center. Criminal Law section 12-102 makes it a misdemeanor, with up to six months in jail or a $5,000 fine, to make or sell a book or pool on a contest or keep a place for betting.

Fantasy, racing and prediction markets

Subtitle 1D of the State Government Article defines a fantasy competition as one with prizes set in advance, imaginary teams, and a result driven by athletes' combined statistics, not one athlete or any team's score or spread. Section 9-1D-02 exempts these contests from the gambling prohibitions, but no one may run a fantasy kiosk or machine in a Maryland business.

The Maryland Racing Commission regulates pari-mutuel betting, the Preakness and the state's seven off-track betting sites. The state pages we checked do not say which online racing wagering platforms are authorized.

On prediction markets, Maryland Lottery and Gaming sent every licensed casino, sportsbook and registered fantasy operator a notification about sports event prediction markets in late 2025.

What's changing

Kalshi challenged Maryland's position in federal court. A federal judge in Maryland denied its request for a preliminary injunction on August 1, 2025, and Kalshi appealed to the Fourth Circuit (No. 25-1892). The court heard argument on May 7, 2026. The docket shows no decision as of its October 14, 2026 update.

Courts elsewhere have not agreed. The Third Circuit, in a split decision in a New Jersey case, held that federal law preempts state gambling rules for sports contracts on registered exchanges. A Fourth Circuit ruling could add to that split.

Tax on winnings

Both residents and nonresidents owe Maryland income tax on winnings. State rates rise to 5.75 percent for most incomes, with two added brackets from the 2025 budget law: 6.25 percent above $500,000 and 6.5 percent above $1 million for single filers. Counties and Baltimore City add a local tax that can reach 3.30 percent from 2026.

Prize winnings over $5,000 are withheld at 9.5 percent for residents and 8.75 percent for nonresidents. If your winnings top $500 and nothing was withheld, you must file Form PV and pay within 60 days of getting the money. We found no Comptroller page on how Maryland treats gambling losses, so ask a preparer before you deduct any. Federal rules sit on top: see [state tax on winnings](/tax/state-tax-on-winnings/).

If something goes wrong

Try the sportsbook first, then file Maryland Lottery and Gaming's patron complaint form within 30 business days of the incident. The agency says it cannot resolve routine customer service matters or give legal advice.

The Voluntary Exclusion Program, started in 2011, covers casinos, the lottery, sports wagering and daily fantasy sports. To enroll, email responsible.gaming@maryland.gov for an appointment or ask a compliance official at any of the six casinos. The Maryland Problem Gambling Helpline is 1-800-GAMBLER (1-800-426-2537), open around the clock, with no-cost treatment for residents.

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