Coinbase Agrees to Halt Sports Event Contracts in Michigan

Coinbase has agreed to stop offering sports-related event contracts to Michigan customers, the Michigan Gaming Control Board (MGCB) announced on October 7, 2026. Under the deal, Coinbase Financial Markets, Inc. must stop selling new sports contracts and close any open customer positions by 12:00 a.m. ET on Saturday, October 10.

The move puts Coinbase alongside Kalshi and Robinhood, which have already stepped back from sports contracts in the state.

What Coinbase Agreed to in Michigan

According to the MGCB’s October 7 announcement, the agreement has four main parts. Coinbase must stop offering new sports-related event contracts to Michigan customers by 12:00 a.m. ET on October 10.

Coinbase must then close any remaining open customer positions by the same deadline.

The halt includes sports contracts traded through KalshiEX and other designated contract markets.

Michigan won’t pursue enforcement while Coinbase complies and related Sixth Circuit appeals continue.

The MGCB says the agreement leaves the bigger question open. Every party keeps its rights, obligations and defenses until the Sixth Circuit or the U.S. Supreme Court issues a final ruling.

How Coinbase’s Court Fight Reached This Point

A federal court denied Coinbase’s request for a preliminary injunction in August 2026, according to the MGCB and other reports. Coinbase appealed that ruling to the Sixth Circuit.

That appeal is now stayed while related appeals involving Robinhood, Polymarket and Kalshi move forward.

Federal Financial Product or State-Regulated Bet?

Coinbase and Kalshi argue these contracts are federally regulated financial products overseen by the Commodity Futures Trading Commission (CFTC). Michigan argues that contracts tied to sports outcomes fall under state gambling law. Under that view, they must meet the state’s sports betting requirements.

Regulated sportsbooks such as FanDuel already operate under MGCB oversight, Spectrum News noted. Michigan lawmakers have also shaped the regulated market this year, rejecting a proposed per-bet sports betting tax in May 2026.

How a Sports Event Contract Pays Out

Spectrum News used a Detroit Lions example to show how these contracts work. You buy 10 contracts on the Lions to win at 60 cents each, for $6 total. If the Lions win, each contract settles at $1, so you collect $10. If the Lions lose, the contracts expire worthless.

That structure looks a lot like a standard sports wager, which is why the regulatory question matters.

Michigan’s Actions Against Kalshi, Robinhood and Coinbase

Nessel’s suit against Kalshi alleges the company took money on sports outcomes without being regulated by the state gaming commission.

MGCB Executive Director Henry Williams framed Coinbase’s exit as part of a pattern. “Coinbase joining Robinhood and Kalshi in stepping back from these unregulated sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” he said.

Williams added that “operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”

Nessel signaled more is coming. “Whether by agreement or court order, we intend to bring all sports betting into compliance with the law,” she said.

Other States Split on Prediction Markets

Michigan isn’t the only state taking a side. New York sued Kalshi in July, arguing it is an unregulated gambling platform.

North Carolina moved the other way. In July, it passed Senate Bill 257, recognizing the “CFTC’s exclusive regulatory authority” over prediction market platforms.

Why the Coinbase Deal Matters for Michigan Bettors

If you hold an open Coinbase sports contract in Michigan, the deadline is 12:00 a.m. ET on October 10. Coinbase has agreed to close remaining positions by then, so check your account before the weekend.

The bigger story is the court fight. With Kalshi, Robinhood and Coinbase all out of Michigan sports contracts, the next major move rests with the Sixth Circuit or the Supreme Court.