Coinbase To Halt Michigan Sports Event Contracts

• Coinbase has agreed to halt its sports event contracts in Michigan
• The Michigan Gaming Control Board today announced the Coinbase decision
• Coinbase sports event contracts will be closed out by midnight on Saturday, Oct. 10

The Michigan Gaming Control Board today announced Coinbase will cease offering sports event contracts in the Wolverine State by midnight on Saturday, Oct. 10.

Any live sports event contracts will be closed out on Oct. 10 as well. The agreement is the latest in a series of actions Michigan has taken this year against alleged unlicensed sports betting operators offering prediction markets in the state.

“Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” Michigan Gaming Control Board (MGCB) Executive Director Henry Williams said in a press release. “Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”

Latest Operator to Cease Sports Event Contracts

Under the terms of the agreement, Coinbase will cease offering sports event contracts in Michigan by midnight on Saturday, Oct. 10, at midnight. Any live sports event contracts will have to be settled this date as well.

In exchange, the state has agreed to not take enforcement action against Coinbase as long as the company remains in compliance, and while related appeals proceed before the U.S. Court of Appeals for the Sixth Circuit.

The court denied Coinbase’s request for a preliminary injunction in August. Coinbase appealed the ruling in the Sixth Circuit and has been stayed pending resolution of related appeals involving Robinhood, Polymarket, and Kalshi.

The decision to halt the contracts, the Michigan Gaming Control Board reported, does not concede any party’s legal position. It preserves both the state and Coinbase’s rights and defenses, including the prediction market company’s argument that its sports event contracts are not subject to state regulation.

“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 Attorney General Dana Nessel said in a release. “Michigan gaming law 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.”

Coinbase joins Robinhood and Kalshi in prohibiting sports event contracts in Michigan. Robinhood agreed to halt contracts in the state earlier this month, while a circuit court granted the state a preliminary injunction against Kalshi in August, requiring the prediction market operator to block sports event contracts in Michigan.

Waiting on Appeals

Coinbase’s decision has led to the third operator to cease sports event contracts in the state. Robinhood will close out its remaining open sports event contracts on Friday, Oct. 9.

Robinhood agreed to halt its sports event contracts in the state until its Sixth Circuit appeals are resolved.

A Michigan Circuit Court for the 30th Judicial Circuit of Ingham County also granted Michigan a preliminary injunction against Kalshi. The preliminary injunction requires Kalshi to utilize a third-party geolocation service to block sports event contracts in the state until the court grants the final order on the case. Any failure to do so will result in a fine of $500,000 per day.