The Michigan Gaming Control Board announced that Coinbase Financial Markets will stop accepting new sports-related event contracts from Michigan residents as of October 10, 2026, and close all open customer positions by the same date. The agreement was reached voluntarily.
This is the third such action by the regulator this year. Robinhood Derivatives signed a similar agreement earlier, and a court issued a preliminary injunction against KalshiEX. Michigan authorities view sports contracts on these platforms as unlicensed wagering disguised as federally regulated prediction markets overseen by the Commodity Futures Trading Commission. Henry Williams, executive director of the MGCB, said operators are halting activity because of serious legal consequences.
Under the agreement, Coinbase must stop offering sports contracts in Michigan — including those traded on KalshiEX and other platforms — and settle accounts with customers by October 10. In return, the state will not impose sanctions as long as the company complies and appeals proceed in the Sixth Circuit Court of Appeals. In August 2026 the court denied Coinbase's request for a preliminary injunction against state action. The appeal is stayed pending resolution of related cases involving Robinhood, Polymarket and Kalshi.
Michigan Attorney General Dana Nessel stressed that state law is unambiguous: sports wagering must operate only through licensed operators. Michigan has now halted sports contracts at Kalshi, Robinhood and Coinbase. The regulator continues work to bring all forms of sports betting into compliance with the law.
