Michigan Secures Coinbase Agreement to Halt Sports-Related Event Contracts by October 10 Deadline

Michigan regulators have reached an agreement requiring Coinbase Financial Markets to stop offering sports-related event contracts to state customers.

The Michigan Gaming Control Board announced that Coinbase will cease new offerings on October 10 and close out all remaining open customer positions by that date. The deal is the latest in a series of state actions targeting unlicensed operators that offer sports wagering products framed as federally regulated prediction markets.

It follows a nearly identical agreement with Robinhood Derivatives, LLC, and a state-court preliminary injunction against KalshiEX LLC. Henry Williams, Executive Director of the Michigan Gaming Control Board, said: “Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws. Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”

Under the stipulation, Coinbase must cease offering new sports-related event contracts in Michigan, including those traded on KalshiEX and other designated contract markets. The company will wind down existing positions by the October 10 deadline. Michigan agreed not to take enforcement action against Coinbase while it remains compliant and while related appeals proceed before the U.S. Court of Appeals for the Sixth Circuit.

The court denied Coinbase’s request for a preliminary injunction in August 2026. Coinbase’s appeal of that ruling is pending before the Sixth Circuit and has been stayed pending resolution of related appeals involving Robinhood, Polymarket, and Kalshi. The stipulation does not resolve the underlying legal dispute over whether Michigan may regulate CFTC-registered event contracts as gambling. It preserves all parties’ rights, obligations, and defenses pending a final ruling from the Sixth Circuit or the US Supreme Court.

Dana Nessel, Michigan Attorney General, said: “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. 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.”

As reported by G3 Newswire, Michigan has now secured agreements or court orders halting sports-related event contracts from Kalshi, Robinhood, and Coinbase. The Attorney General’s office and the Michigan Gaming Control Board continue to work jointly to ensure that sports wagering in Michigan is offered only through properly licensed and regulated operators.

Terms of the Coinbase Stipulation

The agreement requires Coinbase to halt all new sports-related event contract offerings to Michigan customers and wind down existing positions by the October 10 deadline. Michigan will refrain from enforcement provided Coinbase remains compliant during the pendency of the Sixth Circuit appeals.

Status of Related Legal Proceedings

The Sixth Circuit has stayed Coinbase’s appeal pending resolution of parallel cases involving Robinhood, Polymarket, and Kalshi. No final ruling has been issued on whether Michigan can treat these CFTC-registered contracts as gambling under state law.

Reporting: G3 Newswire

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