Maryland Casino Revenues Down 2.1%, Kalshi Fights Back Against Maryland Gaming Regulator

Maryland’s casinos showed in August a slight year-on-year revenue drop of 2.1%, down from $173.9 million to $170.3 million. 

The latest figures from Maryland Lottery and Gaming show that the six commercial casinos in the state combined generated $118.2 million from VLTs, which returned $118.2 million, while table games produced $52 million in revenue. Those figures are both down from last August, when the two segments recorded $118.5 million and $55.4 million, respectively. 

Big Revenue Dips at MGM and Hollywood Drive Overall Decline

Although three of the state's casinos showed year-on-year revenue increases, they were outweighed by the significant decline of the state’s biggest revenue generator. 

MGM National Harbor recorded the highest revenue in August, at $70.1 million, but that was down 6.5% from last year. Hollywood Casino showed a more dramatic decline of 13%, although, as the second smallest revenue generator, it had less impact on the overall picture. 

Kalshi Appeals Maryland Ruling Against Sports Contracts

Meanwhile, Maryland finds itself at the heart of the battle over the legality of prediction markets after U.S. District Judge Adan B. Abelson deemed no clear distinction between Kalshi’s sports event contracts and regulated sports betting. 

Last month, U.S. District Judge Adam B. Abelson denied Kalshi’s request for an injunction against the Maryland Lottery and Gaming Control Commission. 

In his ruling, Abelson concluded that Kalshi’s contracts could be considered sports gambling under state law and emphasized states’ authority to regulate betting within their borders. Kalshi had argued its contracts differ from traditional sports wagers because users trade against each other rather than the house. Still, the court said the company had not shown a likelihood of success on the merits.

The dispute began in April when Maryland regulators issued a cease-and-desist order. Kalshi responded with a lawsuit, claiming its marketplace falls under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) through the Commodity Exchange Act. The company has used similar arguments in ongoing disputes in Nevada and New Jersey.

Kalshi immediately filed a notice of appeal to the Fourth Circuit and asked for an injunction to continue operating. It argued that geofencing Maryland users would take months and tens of millions of dollars. 

The ruling comes as prediction market operators draw interest from major sportsbooks. FanDuel has held talks with Kalshi, while DraftKings is reportedly exploring a deal with Railbird Exchange. Meanwhile, Polymarket recently gained CFTC approval by acquiring QCX Exchange. Since launching sports contracts in January, Kalshi says more than $2 billion has been traded on its platform.