Robinhood Halts Michigan Sports Event Contracts Until Appeal Resolved

• Robinhood will halt offering sports event contracts in Michigan
• The Michigan Gaming Control Board announced all open positions will be closed by Friday, Oct. 9
• Robinhood is the second prediction market operator to halt sports event contracts in the state

Robinhood announced it will halt offering sports event contracts in Michigan, the second prediction market operator to do so in the Wolverine State.

The Michigan Gaming Control Board reported that Robinhood agreed to stop offering new sports event contracts in the state today, and will close out any remaining customer positions in one month on Friday, Oct. 9.

Robinhood’s agreement comes one week after a circuit court granted the state a preliminary injunction against Kalshi, requiring the prediction market operator to block sports event contracts in Michigan.

Gaming Control Board Lauds Win

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

“This agreement is another win for Michigan consumers,” MGCB Executive Director Henry Williams said in a press release. “Sports wagering products should only be offered by operators who are licensed, regulated, and held accountable under Michigan law. We’re pleased Robinhood has agreed to step back from offering these unregulated products while the courts continue to sort out the broader legal questions, and we’ll keep working with the Attorney General’s office to make sure Michigan consumers are protected.”

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 Robinhood’s rights and defenses, including the prediction market company’s argument that its sports event contracts are not subject to state regulation.

Robinhood’s decision to halt sports event contracts in the state is the second prediction market operator to do so this month.

A Michigan Circuit Court for the 30th Judicial Circuit of Ingham County 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.

“Kalshi long attempted to pass itself off as a legitimate gaming operation in our state, and I am relieved that this order further protects Michigan residents from its predatory, unlicensed practices,” Attorney General Dana Nessel said in a press release. “My office will continue to defend Michiganders and enforce our gaming laws, which ensure gambling revenue is regulated and distributed back into our communities.”

Protecting Michigan Residents

The Michigan Gaming Control Board noted it remains committed to protecting Michigan consumers and to ensure sports betting in the state is conducted through Michigan’s regulatory framework.

“Throughout this litigation, our priority has been protecting Michigan consumers from exploitative practices and ensuring betting in our state remains fair and regulated,” Nessel said today in a press release. “I am proud of the dedicated attorneys in my office for securing an agreement that protects Michiganders while our case moves forward.”