Coinbase Financial Markets will close out all open sports-related event contract positions that Michigan customers hold by 12 a.m. ET on October 10, 2026.
The company will also stop offering new sports-related event contracts in the state by the same deadline under an agreement with the state, the Michigan Gaming Control Board (MGCB) said.
The stipulation applies to new sports-related event contracts that Coinbase offers in Michigan, which include contracts traded on KalshiEX and other designated contract markets. Coinbase will wind down existing customer positions by the October 10 deadline.
In return, the state agreed not to take enforcement action against Coinbase so long as the company remains in compliance. That commitment also holds while related appeals proceed before the US Court of Appeals for the Sixth Circuit.
The state and Coinbase negotiated the stipulation, which is the latest in a series of actions Michigan has taken this year against prediction market operators. The regulator called them unlicensed operators offering sports wagering products presented as federally regulated.
Michigan recently reached a nearly identical agreement with Robinhood Derivatives, and it obtained a state-court preliminary injunction against Kalshi.
“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.”
Court fight still unresolved
The agreement does not resolve the underlying legal dispute between Coinbase and the state. In August, the court denied Coinbase’s request for a preliminary injunction, and the company appealed that ruling to the Sixth Circuit.
The appeal has since been stayed until related appeals that involve Robinhood, Polymarket and Kalshi are resolved.
Like the Robinhood agreement, the stipulation leaves open the question of whether Michigan may regulate event contracts registered with the Commodity Futures Trading Commission (CFTC) as gambling.
All parties keep their rights, obligations and defenses until the Sixth Circuit or the US Supreme Court issues a final ruling.
Three operators now off the board
Michigan has now secured agreements or court orders that halt sports-related event contracts from Kalshi, Robinhood and Coinbase. The Attorney General’s office and the MGCB continue to work jointly so that sports wagering in Michigan is offered “only through properly licensed and regulated operators.”
“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.”