Robinhood Shuts Down Sports-Event Contracts in Michigan

Robinhood and the MGCB reach an agreement

While the MGCB and Kalshi have dueled in hard-fought legal battles and continue to do so, the decision by Robinhood to shutter its sports-event contracts was hammered out via negotiations and mutual agreement. The MGCB announced that Robinhood Derivatives, LLC had agreed to stop offering new sports-related event contracts to Michigan customers by the end of the day on Wednesday, September 9. Robinhood also agreed to close out any remaining customer positions by October 9. This decision was arrived at under a court-approved agreement.

“This agreement is another win for Michigan consumers,” MGCB Executive Director Henry Williams said in a statement. “Sports wagering products should only be offered by operators who are licensed, regulated, and held accountable under Michigan law.

"We’re pleased Robinhood has agreed to step back from offering these unregulated products while the courts continue to sort out the broader legal questions, and we’ll keep working with the Attorney General’s office to make sure Michigan consumers are protected.”

Michigan's Attorney General says sports-event contracts are sports betting

Michigan Attorney General Dana Nessel has been staunch in one steadfast opinion since prediction market sites first began offering their product in the Great Lakes State. She is adamant that the sports-event contracts offered by these prediction market sites are nothing more than illegal sports betting.

It's not a novel approach. Many state attorneys general are of the same opinion. In Nessel's case, though, she's been uniquely effective in proving her point and eradicating sports-event contracts from her state.

“Throughout this litigation, our priority has been protecting Michigan consumers from exploitative practices and ensuring betting in our state remains fair and regulated,” Nessel said in a statement. “I am proud of the dedicated attorneys in my office for securing an agreement that protects Michiganders while our case moves forward.”

Ultimately, Michigan lawmakers are willing to allow sports-event contracts to be offered in the state. There's just one condition. They demand that the prediction market sites seek state sports betting licenses and pay the required fees and tax revenues that sports betting sites do to legally operate in Michigan.

Kalshi and Michigan have been battling in court for several months

Sports-event contracts offered by prediction market site Kalshi are also shuttered in Michigan. However, that outcome was the result of a grueling legal battle.

Nessel originally filed suit against Kalshi in March 2026. She argued that the platform violated Michigan's Lawful Sports Betting Act. Kalshi was offering unlicensed online sports gambling disguised as event contract trading.

Kalshi unsuccessfully sought to move the case to federal court. Instead, it stayed in state court. Judge Rosemarie Aquilina issued a temporary restraining order against Kalshi. Earlier this month, her order was converted into a strict preliminary injunction. The order required geofencing to block Michigan users from Kalshi sports wagers. Non-compliance fines were set at $500,000 per day.