Coinbase To End Michigan Sports Event Contracts Under State Stipulation

The Michigan Gaming Control Board (MGCB) announced on 2026年10月7日, that Coinbase Financial Markets, Inc. has agreed to stop offering new sports-related event contracts to Michigan customers by 12:00 a.m. Eastern time on 2026年10月10日, and to close out any open customer positions remaining at that deadline under a stipulation negotiated with the state.

The stipulation requires Coinbase to stop listing new sports-related event contracts for Michigan customers, including contracts traded on KalshiEX and other designated contract markets, and to wind down existing customer positions by the same deadline. In exchange, the state agreed to withhold enforcement action against the company provided it remains in compliance, with the arrangement holding while related appeals proceed before the U.S. Court of Appeals for the Sixth Circuit.

The board described the Coinbase agreement as the latest in a series of actions Michigan has taken in 2026 against unlicensed operators that, in the regulator’s characterization, offer sports wagering products disguised as federally regulated prediction markets. Michigan previously reached a nearly identical agreement with Robinhood Derivatives, LLC, and obtained a state-court preliminary injunction against KalshiEX, LLC.

MGCB Executive Director Henry Williams addressed the withdrawals in the board’s announcement. “Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” Williams said. “Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”

Stayed Sixth Circuit Appeal Leaves Dispute Unresolved

In 2026年8月, the court denied Coinbase’s request for a preliminary injunction. That ruling is on appeal before the Sixth Circuit, where proceedings have been stayed until related appeals involving Robinhood, Polymarket, and Kalshi are resolved.

The board said the stipulation, like the Robinhood agreement, does not resolve the underlying legal dispute over whether Michigan may regulate event contracts registered with the Commodity Futures Trading Commission as gambling. The agreement preserves all parties’ rights, obligations, and defenses pending a final ruling from the Sixth Circuit or the U.S. Supreme Court.

Michigan Attorney General Dana Nessel, whose office works jointly with the MGCB on the enforcement effort, also addressed the agreement. “Our efforts, alongside the Gaming Control Board, are making a clear impression on the executives of the illegal sports betting industry, and we’re glad to reach yet another agreement that protects Michigan residents,” Nessel said. “Michigan gaming law is simple and clear, and written to keep gaming in our state fair and well-regulated. Whether by agreement or court order, we intend to bring all sports betting into compliance with the law.”

Earlier Actions Against Robinhood and Kalshi

The board announced on 2026年9月9日, that Robinhood Derivatives, LLC had agreed, under a court-approved agreement, to stop offering new sports-related event contracts to Michigan customers by the end of that day and to close out remaining customer positions by 2026年10月9日. The board said the agreement made Robinhood the second sports-contract platform to withdraw its Michigan offerings in 2026, following Kalshi. Like the Coinbase stipulation, it concedes no party’s legal position: it preserves both sides’ rights and defenses, including Robinhood’s argument that its federally structured contracts are not subject to state regulation, and remains in effect until the Sixth Circuit appeals are resolved.

Nessel announced on 2026年9月2日, that her office had secured a preliminary injunction against KalshiEX, LLC, requiring the company to maintain geofencing that blocks Michigan residents and people within the state’s borders from its sports betting contracts, with violations carrying a $500,000 per day fine. Nessel filed the lawsuit in 2026年3月, alleging Kalshi violated Michigan’s Lawful Sports Betting Act by enabling Michigan residents to engage in sports betting under the guise of trading event contracts without MGCB licensing approval. After Kalshi moved the case to the U.S. District Court for the Western District of Michigan, Nessel’s motion to remand was granted, returning the case to the Ingham County Circuit Court; she had earlier secured a temporary restraining order in 2026年6月 that temporarily halted Kalshi’s internet sports betting operations and advertising in the state.

With the Coinbase stipulation, Michigan has now secured agreements or court orders halting sports-related event contracts from Kalshi, Robinhood, and Coinbase, the board said. The Attorney General’s office and the MGCB continue to work jointly to ensure that sports wagering in Michigan is offered only through properly licensed and regulated operators.