Coinbase Halts Sports Contracts in Michigan

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Thu Oct 08, 2026, 12:00 pm ET

Read Time: 3 minutes

Coinbase Halts Sports Contracts in Michigan

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Coinbase will halt sports event contracts for Michigan customers after reaching an agreement with state regulators. The company will stop offering new contracts and close existing sports positions by October 10.

The agreement with the Michigan Gaming Control Board (MGCB) marks another setback for prediction market platforms offering sports contracts in the state. Michigan regulators have argued that these products amount to sports betting and require state authorization.

Coinbase, however, has maintained that federally regulated event contracts fall under federal oversight. The company continues to challenge Michigan's authority to regulate these products under state gambling laws.

Under the agreement, Coinbase Financial Markets will stop offering new sports event contracts to Michigan customers by 12:00 a.m. ET on October 10. It must also close all remaining sports positions by that deadline.

The agreement does not resolve the broader legal dispute between Coinbase and Michigan officials. Instead, it allows the company to pause its Michigan sports contracts while related litigation continues.

MGCB Executive Director Henry Williams said Coinbase's decision reinforces Michigan's regulatory position.

"Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan's commitment to enforcing its gaming laws," said Williams. 

"Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state."

Michigan Targets Prediction Market Sports Contracts

Michigan has increasingly challenged prediction-market operators that offer sports contracts without state approval. The state has already taken action involving Kalshi and Robinhood.

The latest agreement therefore puts Coinbase alongside those companies as regulators tighten their approach to sports event contracts.

Michigan Attorney General Dana Nessel also pointed to the state's broader enforcement efforts. She said regulators want sports betting operators to comply with Michigan's established gaming framework.

"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," said Nessel.

She added that Michigan intends to bring sports betting activity into compliance through agreements or court orders.

The dispute creates an important regulatory question for the wider US betting market. Prediction markets argue that event contracts differ from conventional wagers because federally regulated entities list them as financial products.

Michigan officials have taken the opposite view when those contracts cover sporting events. The state's position could therefore affect how prediction markets operate alongside traditional US online sportsbooks.

Coinbase Legal Challenge Continues

Coinbase's agreement also comes as its legal challenge against Michigan regulators continues. The company previously sought a preliminary injunction that would have prevented Michigan officials from enforcing state gambling laws against its sports contracts.

A federal judge rejected that request, prompting Coinbase to appeal to the Sixth Circuit. The underlying litigation remains significant because it could help determine how federal and state authorities share jurisdiction over sports event contracts.

Meanwhile, courts have reached different conclusions in related prediction-market disputes. Those competing rulings have increased uncertainty for operators offering sports contracts across the United States.

For Michigan gambling regulators, however, the immediate position remains clear. Coinbase will no longer offer these sports contracts to Michigan customers after the October 10 deadline.

The agreement therefore represents a temporary resolution rather than a final answer to the jurisdictional dispute. Coinbase can continue pursuing its legal challenge while Michigan maintains its efforts to regulate sports wagering within the state.

The outcome could have wider consequences for prediction markets, traditional sportsbooks and other companies seeking to enter the US sports wagering market.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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