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Maryland has long been a thorn in the side of online gambling sites considered to be operating on the fringe (witness Bodog in 2011). And while Kalshi may be legal courtesy of the Commodity Futures Trading Commission (CFTC), don't tell that to a handful of state regulators. Maryland recently took on Kalshi via the legal system and we have the outcome from Friday's ruling below.
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Maryland regulators score first event contract victory against Kalshi
Unlike Nevada and New Jersey, Kalshi found itself on the losing side in a recently filed matter whereby Kalshi filed its lawsuit against Maryland Lottery and Gaming challenging the legality of the agency’s cease and desist letter it sent to the firm,
The Maryland District Court Judge Adam B Abelson rejected some of the same arguments that favored Kalshi in New Jersey and Nevada.
From our friends at SBC:
Namely, Abelson was unconvinced that Kalshi would have much success arguing that the Commodity Exchange Act (CEA) and related federal laws such as Dodd-Frank pre-empted state gaming laws when it comes to sports-related event contracts.
Abelson noted that he agreed that Kashi demonstrated that there is at least some intent for the CEA to preempt certain state laws, but unlike other courts, he concluded that was insufficient to make ruling and he needed to look more closely at specifically which field of law was under scrutiny.
“The question of whether the presumption “particularly” applies here turns not on whether the federal statute can be framed as pertaining to an area of existing federal regulation, but rather whether the state law governs conduct that has historically been subject to state regulation,” he observed.
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Ohio Governor Mike DeWine Blames Prop Bets After MLB Gambling Scandal
On Thursday, Ohio Gov. Mike DeWine called on the state’s Casino Control Commission to remove prop bets from the list of legal wagers in Ohio.
Previously, regulators here had only focused on prop bets as they pertained to college sports.
DeWine has taken matters further by targeting pro sports leagues.
This comes in the wake of a scandal involving the Cleveland Guardians. Two of its players are under investigation for violating Major League Baseball's gambling policy.
First game Luis Ortiz.
The paid leave for Ortiz, which ended at the conclusion of the All-Star break, was negotiated between the league and the MLB Players Association. That leave was extended and his locker cleared out in recent days.
Guardians closer Emmanuel Clase has also been placed on non-disciplinary paid leave as part of a Major League Baseball investigation into sports betting.
Clase, a three-time All-Star, becomes the second Guardians pitcher to be placed on leave in connection with a sports gambling probe.
“I’m not happy. This stinks,” Guardians manager Stephen Vogt said upon learning of the probe. “It’s a different part of our game now because it’s legal. Two of our guys are being investigated — and it hurts. It’s an unfortunate situation.”
It was not made clear if a decision had been reached involving the two players or if it is just potential locker changes in the clubhouse following the conclusion of the MLB trade deadline on July 31.
DeWine also plans to ask major league sports commissioners and players unions to get behind his effort to ban prop bets in pro sports.
"The harm to athletes and the integrity of the game is clear, and the benefits are not worth the harm," DeWine said in a July 31 statement. "The prop betting experiment in this country has failed badly."
- Chris Costigan, Gambling911.com Publisher
