Coinbase Financial Markets has agreed to stop offering new sports-related event contracts to Michigan customers and close remaining open positions by October 10, 2026, under an arrangement reached with state authorities.
The deadline is 12:00 a.m. Eastern time on October 10. The agreement covers contracts traded on KalshiEX and other designated contract markets.
Michigan officials classify sports-related event contracts as unlicensed sports wagering when offered without a state gaming licence. Coinbase maintains that such contracts fall under federal commodities regulation.
“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.”
Agreement Leaves Broader Legal Dispute Open
The state has agreed not to take enforcement action against Coinbase as long as the company complies with the stipulation while related appeals continue.
A court denied Coinbase’s request for a preliminary injunction in August 2026. Its appeal is pending before the U.S. Court of Appeals for the Sixth Circuit and has been stayed while related cases involving Robinhood, Polymarket and Kalshi proceed.
The stipulation does not resolve whether Michigan may regulate CFTC-registered sports event contracts as gambling. It preserves the parties’ legal rights and defenses pending further court rulings.
Michigan Attorney General Dana Nessel said in a press release:
“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 Continues Action Against Sports Prediction Contracts
The Coinbase agreement follows similar state action involving other prediction-market companies.
Robinhood Derivatives has also agreed to stop offering certain sports-related contracts in Michigan, while KalshiEX remains subject to a state-court preliminary injunction.
The dispute centers on which regulatory framework applies. Michigan argues that contracts tied to sports outcomes fall under its Lawful Sports Betting Act. Prediction-market operators argue that the contracts are financial instruments overseen by the Commodity Futures Trading Commission.
Nessel sued Kalshi earlier this year over its sports-related contracts.
Other states have taken different positions. New York has also challenged Kalshi, while North Carolina passed Senate Bill 257 in July recognizing the CFTC’s exclusive regulatory authority over prediction-market platforms.
Coinbase customers in Michigan must close any remaining sports-related positions by the deadline.
After that point, Coinbase cannot offer new qualifying contracts in the state while the agreement remains in effect.
Michigan has now secured agreements or court orders restricting sports event contracts from Coinbase, Robinhood and Kalshi as the broader legal dispute continues through federal appeals.