Coinbase Halts Sports-Event Contracts in Michigan
Jesse M. Cox Published 12/10/2026
Coinbase has stopped offering sports-event contracts across the state of Michigan. The halt to its operations went into effect on October 10. It was done so under an agreement with the Michigan Gaming Control Board. Coinbase agreed to no longer list new sports-event contract markets and to close all open sports trades by the deadline.
The deal follows similar Michigan departures undertaken by Robinhood and Kalshi. Michigan gaming regulators have successfully argued in court that prediction market sports-event contracts are unregulated sports betting and thus illegal in the state. Prediction market sites have countered that they are federally regulated derivative swaps not subject to state regulations.
The Michigan Gaming Control Board views prediction markets as unlicensed gambling
In a press release announcing Coinbase's decision to halt its sports-event contract, the Michigan Gaming Control Board (MGCB) cited this victory as "the latest in a series of actions Michigan has taken this year against unlicensed operators offering sports wagering products disguised as federally regulated 'prediction markets.'"
It follows a nearly identical agreement recently reached with Robinhood Derivatives, as well as a state-court preliminary injunction obtained against Kalshi.
"Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” MGCB Executive Director Henry Williams said in a statement. “Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”
Michigan won't take legal action against Coinbase
By meeting the terms of the stipulation, Coinbase will avoid facing legal action from the MGCB or the Michigan Attorney General's office. The state has agreed not to take enforcement action against Coinbase. This will be so as long as the company remains in compliance and while related appeals proceed before the U.S. Court of Appeals for the Sixth Circuit.
A Michigan court denied Coinbase’s request for a preliminary injunction in August of 2026. Coinbase’s appeal of that ruling is pending before the Sixth Circuit. It has been stayed pending resolution of related appeals involving Robinhood, Polymarket, and Kalshi.
Like the Robinhood agreement, this stipulation does not resolve the underlying legal dispute. This legal battle covers whether Michigan may regulate CFTC-registered event contracts as gambling. It preserves all parties’ rights, obligations, and defenses pending a final ruling from the Sixth Circuit or the U.S. Supreme Court.
Coinbase is the latest prediction market to feel Michigan's wrath
Few states have proven as successful as Michigan at shutting down sports-event contracts operated by prediction markets. Michigan has now secured agreements or court orders halting sports-related event contracts from Kalshi, Robinhood, and Coinbase. Michigan Attorney General Dana Nessel won a preliminary injunction against Kalshi in March 2026. The case successfully claimed the platform violates the state's Lawful Sports Betting Act by letting users place sports wagers without an MGCB license.
The state Attorney General’s office and the Michigan Gaming Control Board continue to work jointly to ensure that sports wagering in Michigan is offered only through what it views to be properly licensed and regulated operators.
“Our efforts, alongside the Gaming Control Board, are making a clear impression on the executives of the illegal sports betting industry, and we’re glad to reach yet another agreement that protects Michigan residents,” Nessel said in a statement. “Michigan gaming law is simple and clear, and written to keep gaming in our state fair and well-regulated.
"Whether by agreement or court order, we intend to bring all sports betting into compliance with the law.”