Coinbase Halts Sports-Event Contracts for Michigan Players

Coinbase Financial Markets Inc. has agreed to stop offering new sports-event contracts to customers in Michigan by midnight this Saturday, as part of a settlement with the Michigan Gaming Control Board (MGCB). The company will also close out any remaining open positions for Michigan players by the same deadline, according to the MGCB.

This development follows a series of regulatory actions targeting prediction market operators that offer sports wagering products without state licenses. The MGCB describes these firms as “unlicensed operators offering sports wagering products.“ Similar agreements have been reached with Robinhood Derivatives LLC, while a state court has issued a preliminary injunction against KalshiEX LLC.

For players and bettors in Michigan, this means Coinbase will no longer provide access to sports-event contracts, including those traded on platforms like Kalshi and other designated contract markets. Any existing bets or positions must be closed out by the deadline, preventing further exposure to these unregulated offerings.

MGCB Executive Director Henry Williams said, “Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.” This highlights the state’s firm stance on enforcing gaming laws to protect consumers from unregulated sports wagering products that may lack proper oversight and player protections.

While the agreement halts Coinbase’s activities in Michigan, it does not resolve the broader legal question of whether the state can regulate Commodity Futures Trading Commission (CFTC)-registered event contracts as gambling. The dispute remains pending before the U.S. Court of Appeals for the Sixth Circuit, with Coinbase’s appeal currently stayed alongside related cases involving Robinhood, Polymarket, and Kalshi.

The MGCB emphasized that the settlement “preserves all parties’ rights, obligations, and defenses pending a final ruling from the Sixth Circuit or the U.S. Supreme Court.” This means the legal uncertainty continues, and players should remain cautious about engaging with similar products until regulatory clarity is achieved.

Michigan Attorney General Dana Nessel has warned prediction market firms that the state “intends to bring all sports betting into compliance with the law.” For consumers, this signals ongoing efforts to ensure that sports betting offerings meet regulatory standards designed to protect players and reduce risks associated with unlicensed gambling.

Players in Michigan currently using or considering sports-event contracts through Coinbase or similar platforms should be aware that these products are being withdrawn and that continuing to participate could expose them to legal and financial risks. It also underscores the importance of choosing licensed and regulated operators that provide clear consumer protections.

For more information on Michigan’s regulatory environment and updates on sports betting, visit the USA section and Sports Betting category.

Additional context on the regulatory challenges facing prediction markets can be found in CDC Gaming’s report, Predict 2026: CFTC, states battle over regulatory authority, which details the ongoing dispute between the CFTC and state regulators over jurisdiction.

Read the original report from CDC Gaming: Michigan: Coinbase halts sports-event contracts in settlement with regulators.

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Priya Patel

Priya Patel covers regulation, licensing, enforcement, legal developments, and public policy across gambling markets. Her reporting emphasizes source attribution, chronology, and regulatory context.