Coinbase to Stop Offering Sports Event Contracts in Michigan
United States.- 9 October 2026 | www.zonadeazar.com Coinbase Financial Markets has agreed to stop offering sports-related event contracts to customers in Michigan following an agreement with the Michigan Gaming Control Board, MGCB, and the state Attorney General’s office.
The company must stop new activity and close all remaining open sports positions by 12:00 a.m. ET on 10 October 2026.
New Sports Contracts to Stop
The agreement requires Coinbase to cease offering new sports-related event contracts to customers located in Michigan.
This includes contracts traded on KalshiEX and other Designated Contract Markets.
Existing Positions Must Also Close
Coinbase cannot simply stop accepting new trades.
All remaining sports-related positions held by Michigan customers must also be wound down by the 10 October deadline.
Michigan Pauses Enforcement
In return for compliance, Michigan has agreed not to take enforcement action against Coinbase while the company continues to meet the terms of the agreement.
That protection is also tied to the ongoing federal appeals surrounding sports event contracts.
Underlying Dispute Remains Unresolved
The agreement does not determine whether sports event contracts should ultimately be governed as federally regulated financial products or as sports betting under state law.
All parties preserve their legal rights, arguments and defences pending a final court ruling.
Sixth Circuit Appeal
Coinbase previously sought a preliminary injunction preventing Michigan from enforcing its gaming laws against the company.
A federal court denied that request in August 2026.
Coinbase appealed the ruling to the US Court of Appeals for the Sixth Circuit.
Appeal Currently Stayed
The Coinbase appeal is currently stayed while related cases involving:
- Robinhood.
- Polymarket.
- Kalshi.
move through the court.
Those cases could help determine how far states can regulate sports prediction contracts.
Michigan Expands Enforcement
Coinbase joins other platforms that have withdrawn these products in Michigan.
The state previously reached a similar agreement with Robinhood Derivatives.
Michigan also secured a state-court preliminary injunction preventing KalshiEX from offering sports-related event contracts.
Regulator’s Position
MGCB Executive Director Henry Williams said the withdrawal of these products demonstrates Michigan’s commitment to enforcing state gaming law.
The regulator considers unlicensed sports event contracts to function as unauthorised sports wagering.
Attorney General Supports Action
Attorney General Dana Nessel also welcomed the agreement.
Michigan’s position is that sports wagering offered to residents must operate within the state’s licensed and regulated gaming framework.
Prediction Markets Face State Pressure
The case forms part of a broader dispute between prediction-market platforms and US state regulators.
Operators argue that certain event contracts are federally regulated products overseen by the Commodity Futures Trading Commission, CFTC.
States maintain that contracts replicating sports wagers remain subject to their own gambling laws.
No Uniform National Resolution
US courts continue to reach differing conclusions on the issue.
Michigan’s agreements therefore do not amount to a nationwide determination of how sports prediction markets must be regulated.
Next Steps or Impact
Coinbase must complete the withdrawal of its sports-related activity in Michigan by 10 October.
Attention will then remain on the Sixth Circuit, where several appeals could determine how federal commodities law interacts with state gambling regulation.
For now, Michigan has secured the removal of sports-event contracts offered by Kalshi, Robinhood and now Coinbase from the state market.
Editó: @fonta
