Maryland Official Demands Prosecutor Review of Election Betting Markets

Maryland Elections Administrator Jared DeMarinis has asked the state prosecutor to investigate whether prediction market platforms are illegally wagering on election outcomes under Maryland law.

DeMarinis Raises Specific Concerns

DeMarinis said the platforms let users place money on state and local elections, with payouts tied to results certified by election officials, and he argued this appears to be prohibited wagering. The request focuses on how these activities intersect with existing restrictions that treat election betting as a form of illegal wagering. Officials in Maryland are examining whether such platforms operate within the bounds of state rules that apply to all participants, including those placing bets on races in Baltimore and other jurisdictions.

State Law Defines Penalties

Maryland law specifically bans betting on election outcomes, and violations are treated as a misdemeanor punishable by a $50 to $500 fine. This framework applies directly to any wagering that uses certified election results as the basis for payouts. The law sets clear boundaries that DeMarinis referenced when describing the conduct under review, noting that the structure of prediction markets appears to conflict with these longstanding prohibitions.

Referral Process and Wider Review

ABC News reported that DeMarinis said his office would refer credible cases to the state prosecutor if the conduct is outside civil citation authority. The issue is part of broader scrutiny of prediction markets like Kalshi and Polymarket, which have also drawn federal attention over insider-trading concerns. This step keeps the focus on documented cases that may require further action beyond initial review.

Practical Implications for Local Elections

The inquiry centers on how prediction markets handle wagers tied to results from state and local contests, including those affecting Baltimore voters. By linking the investigation to the state prosecutor, the process allows for examination of individual platforms and their compliance with Maryland rules. DeMarinis emphasized that payouts based on officially certified outcomes raise questions under current law, prompting the request for prosecutorial input on next actions.

Path Forward

Officials will continue to assess credible instances and determine whether referral to the state prosecutor is warranted in each case. The emphasis remains on applying existing Maryland statutes to any wagering activity that uses election results as the settlement mechanism.