Robinhood has agreed to stop accepting new sports-related event contract positions from Michigan customers and to close all open positions by October 9, the Michigan Gaming Control Board said as litigation over prediction market operators continues in state and federal courts.
Under the agreement, Michigan authorities will not apply the state's sports betting laws to Robinhood as long as the company complies with the restrictions. Access to other prediction markets on the platform remains open to state residents. The arrangement holds until final resolution of cases involving Robinhood, Coinbase and Kalshi in the Sixth Circuit Court of Appeals, including potential review by the US Supreme Court.
Robinhood said it does not believe the contracts violate state law but confirmed that customers in Michigan will be unable to open new positions on sports contracts starting this Wednesday. An MGCB representative called the move a positive step for customers and the integrity of the state's regulated market.
The decision came a week after Michigan's attorney general secured a preliminary injunction against Kalshi. An Ingham County circuit judge barred Kalshi from offering sports contracts to state residents, noting that the company operates outside the established player protection framework. Violations carry a $500,000 fine per day.
The court ruled that Kalshi gains a massive unfair advantage over licensed operators by not complying with regulatory requirements. Kalshi was ordered to use an MGCB-licensed geolocation provider to block access from Michigan.
