Coinbase exits Michigan sports contracts pending appeal
The deal suspends Michigan’s enforcement, but the question of who regulates sports event contracts now rests with the Sixth Circuit.
Key takeaways:
- Coinbase Financial Markets has agreed with the Michigan Gaming Control Board to stop offering new sports event contracts to Michigan customers. It must close remaining customer positions by October 10.
- In return, Michigan will not pursue enforcement while Coinbase appeals before the US Court of Appeals for the Sixth Circuit.
- The agreement does not settle whether Michigan can regulate CFTC-registered exchanges’ sports contracts as gambling, and both sides’ rights are preserved until the Sixth Circuit or the Supreme Court rules.
U.S.- Coinbase Financial Markets has agreed to stop offering new sports-related event contracts to customers in Michigan by the the start of October 10 Eastern Time. It must close all remaining customer positions by the same deadline.
Under an agreement with the Michigan Gaming Control Board (MGCB), Coinbase will also stop offering sports-related contracts traded through KalshiEX and other designated contract markets to Michigan customers. In return, the state will not pursue enforcement against the company as long as it complies with the terms while its appeals continue before the US Court of Appeals for the Sixth Circuit.
The agreement follows a similar case involving Robinhood Derivatives LLC and a preliminary injunction obtained by the state against KalshiEX LLC.
“Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” Williams said.
The agreement does not settle the dispute over whether Michigan can regulate sports-related event contracts offered by exchanges registered with the Commodity Futures Trading Commission (CFTC) as gambling. A court denied Coinbase’s request for a preliminary injunction in August 2026. The company appealed the decision to the Sixth Circuit, and the case has been stayed while related appeals involving Robinhood, Polymarket and Kalshi are considered.
The stipulation preserves Coinbase’s and Michigan’s respective rights, obligations and legal arguments until the Sixth Circuit or the US Supreme Court reaches a final decision.
Frequently asked questions (FAQs)
- What happens to Coinbase users’ open sports positions in Michigan? Coinbase must close all remaining customer positions in the state by 12:00 a.m. ET on 10 October 2026. The article does not specify how those positions will be settled.
- Why is Michigan acting against Coinbase, Robinhood and Kalshi? The state says these operators offered sports betting products without a Michigan gaming licence. Attorney General Dana Nessel said the actions are meant to ensure sports wagering is offered only through licensed and regulated operators.
- Are sports event contracts legal in Michigan? That is still unresolved. A court denied Coinbase’s request for a preliminary injunction in August 2026, but its appeal to the Sixth Circuit is stayed while related cases involving Robinhood, Polymarket and Kalshi are considered.
