Coinbase agrees to halt sports-related event contracts in Michigan

(PRESS RELEASE) -- The Michigan Gaming Control Board announced today 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 10 October 2026, and to close out any remaining open customer positions by that same deadline.

The agreement, negotiated between the state and Coinbase, is the latest in a series of actions Michigan has taken this year against unlicensed operators offering sports wagering products disguised as federally regulated “prediction markets.” It follows a nearly identical agreement recently reached with Robinhood Derivatives, LLC, as well as a state-court preliminary injunction obtained against KalshiEX LLC.

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

Under the terms of the stipulation, Coinbase will cease offering new sports-related event contracts in Michigan — including those traded on KalshiEX and other designated contract markets — and will wind down existing customer positions by the October 10 deadline. In exchange, the state has agreed to not to take enforcement action against Coinbase so long as the company remains in compliance, 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. Like the Robinhood agreement, this 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 U.S. Supreme Court.

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

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.