Maryland Daily Fantasy Sports Sites

More than a dozen daily fantasy sports apps are authorized to offer real-money DFS contests in Maryland. Each of the following Maryland fantasy sports sites is registered with the state, and readers can verify operator licenses at the Lottery and Gaming Control Commission website.

Licensed Maryland DFS Sites

• Underdog Fantasy
• OwnersBox
• FanDuel DFS
• DraftKings DFS

Maryland Daily Fantasy Sports Law

Maryland fantasy sports law exempts DFS contests from prohibitions on gambling and grants regulatory powers to the State Lottery and Gaming Control Commission:

• Maryland Fantasy Sports State Law: MD Code Ann., State Government §§ 9-1D-01
• Maryland DFS Regulations: MD Code Reg 36.09

Per state law, daily fantasy sports sites in Maryland must register with the Commission, pay a 15% tax on revenues, and enforce a minimum age of 18 to play. All tax revenues collected by the state go to the Blueprint for Maryland’s Future Fund to support public education.

In April 2022, Maryland cracked down on some daily fantasy providers that regulators believed were veering too closely to full-fledged sports wagering. As a result, predictions-oriented DFS operators like PrizePicks left the Maryland fantasy sports market. Additionally, Underdog Fantasy and OwnersBox disabled their pick ’em contests in Maryland but kept their traditional draft-style DFS leagues.

Maryland DFS Registration Rules

Maryland law does not involve a complex licensing process, but fantasy sports platforms must register with the state, pay a $100 registration fee, and renew it annually for an additional $100.

When registering, Maryland DFS apps must provide the following information to the State Lottery and Gaming Control Commission:

• Operator’s name and principal address; names and addresses of directors, trustees, and executive staff officers; place and date where the operator was established and its form of organization
• Evidence satisfactory to the Commission that the operator has procedures to prevent prohibited persons from entering DFS contests
• A responsible gambling plan
• Any additional information the Commission requests

Individuals Prohibited from Participating in Maryland DFS Contests

Daily fantasy sports sites in Maryland must have policies and procedures to prevent the following categories of players from participating in DFS contests:

• Anyone under 18
• Members of the State Lottery and Gaming Control Commission
• Fantasy sports operators’ employees, officers, and their same-household relatives – exception allowed for private contests only available to officers, operators, same-household family members, and friends
• Athletes, sports agents, team employees, referees, league officials, and their immediate family members may not enter contests involving their associated sports
• Individuals who have self-excluded

Maryland DFS Rules to Ensure Fair Contests

Licensed Maryland fantasy sports sites must do the following to support fair gaming for players of all skill levels:

• Submit proposed rules for new types of DFS contests to the Commission for approval
• Prohibit unauthorized scripts and use reasonable methods to prevent their use
• Make authorized scripts prominently available to all customers
• Operators must offer some beginners-only contests not open to highly experienced players
• Beginner player: Has entered fewer than 51 contests through a single operator; does not meet the definition of a highly experienced player
• Highly experienced player: Has entered more than 1,000 contests through a single operator or has won three prizes worth $1,000 or more each
• Disclose the number of entries players may submit into each competition and implement procedures to prevent players from exceeding the allowed number of entries
• Prominently display the sources used to determine DFS contest results

Maryland Daily Fantasy Sports Consumer Protection Rules

Registered Maryland daily fantasy sports apps must comply with the following regulations to protect customers’ funds and personal information:

• Provide a means for customers to file disputes
• Hold players’ funds in segregated accounts separate from operational funds
• Comply with all state and federal data security regulations
• Operators that generate gross annual revenues of $250,000 or more must undergo annual third-party audits

Maryland DFS Responsible Gambling Regulations

Maryland fantasy sports law emphasizes responsible gambling and requires operators to:

• Develop responsible gambling plans that include which employees are responsible for overseeing responsible gambling, training for employees, means of educating customers on problem gambling and help resources, and the placement of responsible gambling messaging on their platforms
• Conduct annual reviews on players with increased deposit limits to confirm their continued ability to afford such losses
• Not extend credit to players
• Provide a method for players to voluntarily self-exclude from participating in DFS contests
• Train employees on compulsive play
• Not issue advertisements targeting self-excluded players
• Not issue advertisements that depict minors (unless they are professional athletes), students, schools, and colleges
• Prevent players from depositing more than $5,000 per month unless they qualify for exceptions
• Fantasy sports sites may temporarily or permanently increase a player’s deposit limits if the operator conducts an investigation on the player’s ability to afford such losses and obtains evidence of that player’s income or assets

How Maryland Legalized Daily Fantasy Sports

Maryland daily fantasy sports sites operated in an unregulated environment until 2017.

The fantasy sports industry did an adequate job of self-regulating at the time, especially with FanDuel and DraftKings commanding an overwhelming market share. But after a massive advertising blitz in 2015 and new operators beginning to appear almost weekly, lawmakers eventually decided it was time to introduce a regulatory framework.

The Maryland Comptroller’s Office had the authority to regulate traditional, season-long fantasy sports contests due to a 2012 bill, but it was unclear if its powers extended to daily fantasy sports.

To answer the question, Maryland Senator Thomas Mike Miller, Jr. asked the Attorney General’s Office for an opinion on whether the Comptroller could introduce daily fantasy regulations under its existing powers.

The Maryland Attorney General’s Office responded with an opinion in January 2016. The letter stated that although there is significant ambiguity regarding how daily fantasy sports interact with existing law, the AG’s Office believes the 2012 law should have been referred to the electorate for a statewide referendum because it was essentially an expansion of gambling in Maryland, which requires voter approval.

However, the letter also recommended the Maryland Legislature take up the issue “this session” due to the “substantial uncertainty” regarding the matter. Lawmakers responded by introducing two bills in 2016 to regulate daily fantasy sports in Maryland:

SB 976 sought to authorize and regulate the commercial daily fantasy sports industry in Maryland by:

• Requiring the State Lottery and Gaming Control Commission to regulate the operation of online daily fantasy sports games
• Implementing a licensing process for fantasy sports operators
• Establishing a licensing fee for DFS operators
• Requiring the State Lottery and Gaming Control Commission to conduct investigations and ensure that operators comply with all rules

HB 930 sought “transfer the authority to adopt certain regulations relating to fantasy competitions from the Comptroller to the Director of the Lottery and Gaming Control Agency….” The bill also reiterated the UIGEA-compliant definition of fantasy sports contests to ensure their compatibility with federal law.

Neither Maryland DFS bill became law, with one dying in committee and the other dying in the house.

Later that year, the Maryland Comptroller’s Office introduced daily fantasy sports regulations despite the legal uncertainty.

The new regulations did not establish a licensing process but still required operators to inform the Comptroller’s office of their intention to offer fantasy sports contests in Maryland. Otherwise, the new rules largely resembled those approved in other states:

• Maryland daily fantasy sports sites must prohibit players under 18, employees of fantasy sports sites, and their family members from participating in games. DFS sites must also prohibit professional athletes from participating in contests that involve their sports.
• Fantasy games based on amateur or college sports are prohibited
• Operators must clearly identify highly experienced players to everyone else
• Operators must restrict the use of third-party scripts (automation tools designed to give players an edge in contests)
• Operators may not extend credit to players
• Operators must keep player funds in segregated bank accounts
• Operators may not depict minors, students, and school or college settings in their advertisements
• Fantasy sports sites must notify Marylanders of their tax obligations

The Office of the Comptroller transferred regulatory authority to the Maryland Lottery and Gaming Control Commission in 2018 after lawmakers passed SB 900, a bill that also banned fantasy sports terminals.

The 2016 regulations remained in effect for several years despite the continued legal uncertainty. However, lawmakers resolved the issue for good in 2021 when the legislature passed HB 940 to legalize sports betting in Maryland and regulate daily fantasy sports.

Unlike previous legislative efforts to regulate DFS in Maryland, HB 940 took effect after a statewide referendum. As a result, Maryland officially legalized daily fantasy sports and established a regulatory framework absent the legal uncertainty that had plagued the effort for years prior.

Maryland Daily Fantasy Sports FAQ