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- Coinbase has reached an agreement with the Michigan Gaming Control Board to suspend its prediction market operations within the state by October 10, halting the offering of new sports event contracts and winding down existing positions.
- The temporary halt, which mirrors similar regulatory agreements reached with Robinhood and Kalshi, keeps Coinbase compliant with Michigan law while the broader legal battle over whether these markets fall under state gambling oversight or federal commodities regulation continues in the Sixth Circuit Court of Appeals.
Coinbase has agreed to suspend its prediction market operations in Michigan under a deal with the Michigan Gaming Control Board, with the company required to stop offering new event contracts and wind down existing ones by Oct. 10.
The agreement adds Coinbase to a growing list of operators stepping back from Michigan’s market as state officials argue that sports event contracts fall under state gaming law. It also gives readers a clearer timeline: Michigan said it will not take enforcement action against Coinbase while the company remains compliant and related appeals continue before the U.S. Court of Appeals for the Sixth Circuit.
The MGCB said the Coinbase deal is “nearly identical” to the agreement it announced with Robinhood in September. Kalshi separately paused its offering after the Ingham County Circuit Court granted a temporary restraining order sought by the Michigan Attorney General’s Office on the regulator’s behalf.
MGCB executive director Henry Williams said Coinbase joining Robinhood and Kalshi in stepping back from what the state calls unlicensed sports contracts “underscores Michigan’s commitment to enforcing its gaming laws.”
Michigan Attorney General Dana Nessel said the agreement protects Michigan residents and added that the state intends to bring all sports betting into compliance with the law.
Michigan action fits broader state push on sports event contracts
The InterGame report said Coinbase, Kalshi and Robinhood continue to argue that prediction markets are regulated at the federal level by the Commodity Futures Trading Commission. That position remains central to the legal fight with state gaming regulators.
Michigan is not acting alone. In Ohio, the Ohio Casino Control Commission sent 10 cease-and-desist letters to prediction market operators including Coinbase, Underdog, ProphetX and Novig. The notices require recipients to stop offering, participating in offering, or facilitating sports event contracts in the state and to notify the regulator in writing of compliance by Oct. 16.
Ohio interim executive director Andromeda Morrison said the Sixth Circuit’s Sept. 25 ruling made clear that sports event contracts are subject to Ohio gambling laws and that the commission expects operators to stop the activity immediately.
What comes next in Michigan and beyond
For now, the Michigan agreement is described as a temporary measure rather than a permanent exit. The article said the deal does not end Coinbase’s right to operate in the state, but pauses the offering while appeals over how prediction markets should be regulated move through the courts.
That leaves the next key question unchanged: whether courts ultimately side with operators pointing to CFTC oversight or with states treating sports event contracts as gambling products subject to local law.
The broader pressure on prediction market companies has also extended beyond Michigan and Ohio. The report noted that New York last month sued Polymarket, alleging it was running an illegal gambling operation.
Source: As reported by Jonny Whitfield.
