Coinbase to pull sports-related event contracts out of Michigan by October 10

Coinbase Financial Markets has formed a new agreement with the Michigan Gaming Control Board (MGCB) to pull its sports-related event contracts out of the state, as well as close all remaining open customer positions by October 10. 

As part of the agreement, the MGCB will not take enforcement action against Coinbase “so long as the company remains in compliance.”

Speaking on the announcement, MGCB Executive Director Henry Williams said: "Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws. 

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

The operator’s agreement with the MGCB follows a similar decision made by Robinhood on September 9, choosing to wait out ongoing legal disputes between state regulators and Kalshi.

On September 2, Michigan Attorney General Dana Nessel was granted a second preliminary injunction forbidding Kalshi from offering sports-related event contracts across the state, while any violations of the order would result in fines of $500,000 per day.

Nessel originally obtained a preliminary injunction against Kalshi on June 29, only to see the Commodity Futures Trading Commission “exercise its authority to stay an emergency rule change proposed by Kalshi” in July, blocking the operator from cancelling Michigan trades.

Coinbase’s request for a preliminary injunction against Michigan regulators was previously denied in August, while the operator’s appeal of the ruling is currently pending before the Sixth Circuit – along with those involving Robinhood, Polymarket and Kalshi.

In neighboring Ohio, the state’s Casino Control Commission issued 10 cease-and-desist orders to prediction market operators on October 6, including Robinhood, Coinbase, Novig, Underdog and Polymarket.

Kalshi remains involved in litigation with the Ohio regulator, having recently suffered a loss after the US Court of Appeals for the Sixth Circuit ruled against its disputes with policymakers in Ohio and Tennessee on September 28.

Each of the operators served with cease-and-desist orders on October 6 were given 14 days to respond and shut down their respective prediction market operations in Ohio.