Polymarket to Withdraw Sports Event Contracts From Michigan
United States.- 30 October 2026 | www.zonadeazar.com Polymarket US has agreed to withdraw its sports-related event contracts from Michigan, United States, following an agreement with the state’s gambling authorities.
The decision, announced by the Michigan Gaming Control Board (MGCB), requires the platform to stop offering new sports event contracts and close all outstanding customer positions by 25 November 2026.
Approved by a federal court, the agreement represents another development in Michigan’s efforts to ensure that companies offering sports-related products comply with state sports betting legislation.
Polymarket Must Close Contracts by 25 November
The agreement establishes specific obligations for QCX LLC, operating as Polymarket US.
The principal requirements include:
- Ceasing the offering of new sports-related event contracts to Michigan residents.
- Allowing customers to close existing positions.
- Closing any outstanding positions not voluntarily settled by customers.
- Completing the process by the end of 25 November 2026, Eastern Time.
In exchange, Michigan authorities have agreed not to pursue enforcement action against the company provided it complies with the agreement.
The restrictions specifically concern sports event contracts and do not constitute a general prohibition on every type of prediction market product.
Agreement Approved by Federal Court
The terms were approved by the US District Court for the Western District of Michigan.
The court’s involvement follows several months of legal disputes between Polymarket and state officials.
The agreement allows the company to avoid further state enforcement action while it complies with the agreed conditions.
However, it does not definitively resolve the legal question of which authorities have jurisdiction over sports-related contracts traded on prediction market platforms.
That issue remains the subject of litigation across several US jurisdictions.
Michigan Requires State Licences for Sports Betting
The MGCB maintains that sports event contracts offered through prediction markets must comply with the same state requirements applicable to sports betting.
From the regulator’s perspective, these products constitute gambling when customers can profit from the outcomes of sporting events.
Prediction market companies, meanwhile, have argued in various legal proceedings that certain event contracts fall under federal derivatives regulation.
The dispute therefore concerns competing interpretations of regulatory authority: state jurisdiction over gambling and federal oversight of financial contracts.
Statements From MGCB Executive Director
Henry Williams, Executive Director of the Michigan Gaming Control Board, welcomed the agreement as part of the state’s enforcement activities.
Williams highlighted that Polymarket’s withdrawal follows action involving Kalshi, Robinhood and Coinbase.
“We expect all operators to respect Michigan’s regulatory framework. If you want to offer sports wagering to Michigan residents, you need a Michigan license,” he stated.
The regulator considers the latest agreement further evidence of its ability to enforce Michigan’s gambling legislation.
Polymarket Filed Federal Lawsuit in March
The dispute began in March 2026, when Polymarket filed a federal lawsuit against Michigan officials.
The company sought to prevent the state from enforcing its gambling laws against sports event contracts offered through the platform.
In March, the court denied Polymarket’s request for a temporary restraining order.
In June, it also rejected the company’s application for a preliminary injunction.
Polymarket appealed that ruling to the US Court of Appeals for the Sixth Circuit, where the proceedings remain pending.
State Officials Previously Warned of Enforcement
On 10 September 2026, Michigan’s Department of Attorney General notified Polymarket that legal action would follow unless the company stopped offering sports-related event contracts to state residents.
The warning followed enforcement action against other prediction market platforms.
Subsequent discussions resulted in the agreement announced on 28 October.
The arrangement establishes a procedure for withdrawing the sports products without the state immediately pursuing further enforcement measures.
Kalshi, Robinhood and Coinbase Also Affected
Polymarket becomes the fourth platform subject to agreements or court orders restricting sports event contracts in Michigan.
Previous developments include:
- Kalshi: a preliminary injunction preventing the offering of sports event contracts in the state.
- Robinhood Derivatives: an agreement to halt new contracts and close existing positions by 9 October.
- Coinbase Financial Markets: a similar agreement, with a 10 October deadline.
- Polymarket US: cessation of new sports event contracts and closure of outstanding positions by 25 November.
Together, these actions demonstrate Michigan’s sustained regulatory approach.
However, the agreements do not necessarily represent a final resolution of the underlying jurisdictional disputes.
Statements From Attorney General Dana Nessel
Dana Nessel, Michigan’s Attorney General, highlighted the cooperation between her office and the state gambling regulator.
Nessel stated that actions involving Kalshi, Robinhood, Coinbase and Polymarket are intended to ensure sports wagering activities operate within Michigan’s legal framework.
She also emphasised the objective of protecting residents through the oversight requirements and safeguards established under state legislation.
The Attorney General’s office will continue working with the MGCB to monitor sports-related event contracts.
State and Federal Regulatory Dispute Continues
Polymarket’s withdrawal comes amid a broader debate concerning the legal treatment of prediction markets in the United States.
Platforms offering contracts on sporting events have argued that federal legislation governing certain financial instruments applies to their activities.
Meanwhile, several state authorities maintain that these products must comply with local sports betting laws.
The controversy involves the interpretation of the Commodity Futures Trading Commission’s (CFTC) jurisdiction and the powers of individual state gambling regulators.
Future court decisions could influence how these platforms operate across the country.
Industry Impact and Next Steps
The agreement between Polymarket and Michigan represents another development in the regulatory disputes surrounding sports prediction markets.
The company must complete the closure of outstanding positions by 25 November, while its appeal before the Sixth Circuit remains pending.
For Michigan, the agreement expands restrictions already secured against other platforms.
For the industry, the case highlights the continuing disagreement between federal and state authorities over the regulation of sports event contracts.
With Polymarket’s withdrawal, Michigan has secured agreements or court orders restricting sports event contracts from four major platforms: Kalshi, Robinhood, Coinbase and Polymarket.
The broader question of regulatory jurisdiction remains unresolved.
Edited by: @fonta
