Coinbase agrees to halt sports-related event contracts in Michigan by October 10 deadline
Coinbase must stop offering new sports-related event contracts and close existing customer positions in Michigan by 12:00 a.m. Eastern on October 10, 2026, the MGCB said.
Key takeaways
- 01Coinbase Financial Markets, Inc. agreed to stop offering new sports-related event contracts to Michigan customers and close out remaining open positions by 12:00 a.m. Eastern time on October 10, 2026.
- 02The agreement follows a nearly identical deal with Robinhood Derivatives, LLC, and a state-court preliminary injunction against KalshiEX LLC.
- 03The court denied Coinbase's request for a preliminary injunction in August 2026; its appeal is pending before the Sixth Circuit, stayed pending related appeals involving Robinhood, Polymarket and Kalshi.
The Michigan Gaming Control Board said 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 October 10, 2026, and to close out any remaining open customer positions by that same deadline.
“Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”
What the agreement covers
Under the stipulation, Coinbase will stop 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 agreed not to take enforcement action against Coinbase so long as the company stays in compliance while related appeals proceed before the U.S. Court of Appeals for the Sixth Circuit.
The deal is the latest in a string of state actions against operators offering sports wagering products the MGCB says are disguised as federally regulated “prediction markets.” It follows a nearly identical agreement with Robinhood Derivatives, LLC, and a state-court preliminary injunction against KalshiEX LLC.
Litigation continues
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, and preserves all parties’ rights pending a final ruling from the Sixth Circuit or the U.S. Supreme Court.
Add iGamify News as a preferred source on Google
What this means
Michigan customers with open sports-related event contract positions on Coinbase should expect those positions to be closed out by the October 10 deadline, and no new such contracts will be available afterward. The MGCB and Attorney General’s office said they will keep pursuing agreements or court orders against operators offering unlicensed sports wagering products in the state.
