Share 
The Michigan Gaming Control Board (MGCB) announced on Wednesday that Coinbase would no longer offer sports-related prediction contracts, joining Kalshi and Robinhood in ending the contracts in the state.
Per a press release from the MGCB, Coinbase Financial Markets, Inc. agreed to halt new sports-related contracts by 12:00 am EST on Saturday, October 10. Any remaining open positions held by customers were closed by that time as well.
Michigan and Coinbase negotiated the agreement to avoid further litigation. Coinbase had been accused by the state of operating as an unlicensed gambling operator, utilizing its approval as a CFTC-approved derivatives market as a loophole to offer sports betting through prediction markets.
Robinhood and Kalshi came to similar agreements with the state.
MGCB Executive Director Henry Williams emphasized the state’s qualification as an unlicensed gambling operator in his statement:
“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.”
Under the terms of the agreement, Coinbase will end its sports-related contracts in Michigan in exchange for the state not taking legal action against the company. Coinbase requested a preliminary injunction in August of this year and was denied. Its appeal of that ruling currently sits in the Sixth Circuit awaiting a final decision.
Michigan Attorney General Dana Nessel commended the MGCB for its action and reiterated that the state remains dedicated to enforcing its gambling laws:
“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. Michigan gaming laws is simple and clear, and written to keep gaming in our state fair and well-regulated. Whether by agreement or court order, we intend to bring all sports betting into compliance with the law.”
