Coinbase agrees to stop sports prediction contracts in Michigan
Coinbase has agreed to stop offering sports-related prediction contracts in Michigan as state gambling regulators continue their push against event-trading platforms they argue are providing unlicensed sports betting.
Coinbase Financial Markets will stop allowing Michigan customers to enter new sports event contracts by midnight Eastern time on October 10 and must close any remaining open positions by the same deadline.
The agreement was announced by the Michigan Gaming Control Board on October 7, with it covering sports event contracts offered through Kalshi and other federally registered designated contract markets.
Michigan argues these products amount to sports betting and therefore cannot legally be offered in the state without a gambling licence.
Prediction market companies maintain that event contracts fall under federal commodities law and Commodity Futures Trading Commission oversight, putting them outside state gambling regulation.
That fundamental legal question remains unresolved.
Under the agreement, Michigan will refrain from taking enforcement action against Coinbase provided it complies with the restrictions while related federal appeals continue.
Coinbase has not conceded that its contracts violate Michigan gambling law.
“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.
“Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”
Coinbase had previously sought a federal injunction preventing Michigan from taking enforcement action against it, but that request was denied in August.
Its appeal remains before the US Court of Appeals for the Sixth Circuit and has been stayed while related cases involving Robinhood, Polymarket and Kalshi progress.
Michigan has now secured agreements or court orders restricting sports event contracts from Coinbase, Robinhood and Kalshi.
Robinhood is due to close its remaining Michigan sports positions by October 9, while a state court has ordered Kalshi to block sports contracts in Michigan.
Attorney General Dana Nessel said the state intended to continue treating sports event contracts as gambling products when offered to Michigan residents.
“Michigan gaming law is simple and clear, and written to keep gaming in our state fair and well-regulated,” Nessel said.
“Whether by agreement or court order, we intend to bring all sports betting into compliance with the law.”
The USA has a patchwork of gambling laws withs some states having regulated online gambling and wagering, while others still have an outright ban on the practice
