The MLGCA regulates fantasy competitions under the authority of State Government Article, §9–1D–01, Annotated Code of Maryland.
Regulations are found in COMAR Title 36, Subtitle 9.
Among the competitions that are subject to these regulations are online simulated games and contests. Regulations require that prize values in these competitions are established and announced in advance, and that the outcomes reflect the skill of the participants.
Operators of these competitions are required to notify the Maryland Lottery and Gaming Control Commission that they are qualified to do business in the state. They must also comply with consumer protection measures and financial auditing and tax law requirements outlined in COMAR Title 36, Subtitle 9.
Pursuant to State Government Article §9–1D, fantasy competition operators are required to register with Maryland Lottery and Gaming.
In accordance with tax laws, prize payouts larger than $600 for fantasy competitions covered by COMAR Title 36, Subtitle 9 will be reported to the Comptroller of Maryland and the Internal Revenue Service.
Clarification on the Scope of Fantasy Competitions
Approved fantasy competition operators in Maryland are not permitted to offer competitions in which the winning outcome is based on:
- The score, point spread, or any performance of a single actual team
- The score, point spread, or any performance of any combination of teams
- Any single performance of an individual athlete or player in any single actual event
These types of wagers (parlays and propositions) are among those that Maryland’s regulations define as sports wagering. Fantasy competition operators are prohibited from offering competitions that are defined as sports wagering. Definitions are provided in the following regulations:
Approved Online Fantasy Competition Operators
Click here to view a list of online fantasy competition operators that have notified the Maryland Lottery and Gaming Control Agency that they are qualified to do business in the state. (Updated 11/17/23)
Tax on Fantasy Competition Operator Proceeds
Effective May 18, 2021, Chapter 356 of the 2021 Session Laws of Maryland (House Bill 940 – Gaming – Regulation of Fantasy Gaming Competitions and Implementation of Sports Wagering – Supplementary Appropriation) added requirements to the existing Law:
- New SG §9–1D–04(a) requires a fantasy competition operator to retain 85% of its proceeds, and pay the remainder to the Commission.
To complete the Quarterly Fantasy Contest Operator Tax Form for the new 15% operator tax, please click here.
The instructions for completing the Quarterly Fantasy Contest Operator Tax Form are included on the tax form. However, if you have any questions about completing the tax form, please send an email to dlfantasycompetition_
NOTICE: TAXATION OF PROCEEDS AND REGISTRATION OF FANTASY COMPETITION OPERATORS
Maryland State Lottery and Gaming Control Agency hereby provides notice to fantasy competition operators of the new taxation requirement on proceeds, and the new operator requirement. Click here for more information.