Coinbase Financial Markets will cease offering new sports-related event contracts to Michigan customers and close out all existing positions by October 10, 2026. This move comes as part of an agreement with the Michigan Gaming Control Board (MGCB), which was announced following a series of regulatory actions against prediction market operators in the state.
Details of the Stipulation
The agreement requires Coinbase to stop providing new sports event contracts, including those traded on KalshiEX and other designated contract markets, to Michigan residents by the stated deadline. All open positions held by customers must be resolved by 12 a.m. ET on October 10, 2026. In exchange, the state has agreed not to pursue enforcement action against Coinbase as long as the company complies with the terms, even while related appeals are ongoing before the US Court of Appeals for the Sixth Circuit.
Michigan’s Regulatory Approach
This stipulation is the latest in a series of enforcement actions by Michigan targeting operators offering sports wagering products without state licenses. The MGCB has previously reached a similar agreement with Robinhood Derivatives and secured a state court injunction against Kalshi. The regulator has described such operators as presenting their products as federally regulated while lacking the required Michigan licenses.
Implications for the Industry
For operators and affiliates, Michigan’s actions signal a firm stance on enforcing gaming laws and limiting sports wagering to licensed entities. The agreements with Coinbase, Robinhood, and Kalshi demonstrate the state’s willingness to pursue legal remedies and negotiations to ensure compliance. Suppliers and affiliates working in Michigan will need to carefully assess their partnerships and offerings to avoid regulatory scrutiny.
Ongoing Legal Uncertainty
The underlying legal dispute over whether Michigan can regulate event contracts registered with the Commodity Futures Trading Commission (CFTC) as gambling remains unresolved. The current agreement preserves all parties’ rights and defenses until the Sixth Circuit or the US Supreme Court delivers a final ruling. Related appeals involving other operators, such as Polymarket, are also pending.
Key takeaways
- Coinbase will end all Michigan sports event contract offerings and positions by October 10, 2026.
- Michigan is actively enforcing its gaming laws against unlicensed prediction market operators.
- Similar regulatory actions have targeted Robinhood Derivatives and Kalshi.
- The broader legal question of state versus federal regulation of event contracts remains unsettled.