Coinbase to wind down sports event contracts in Michigan

Coinbase Financial Markets, Inc. has agreed to a stipulation with the Michigan Gaming Control Board (MGCB) to cease offering new sports-related event contracts to customers in Michigan. Under the agreement, the company must stop listing new contracts and close out all remaining open customer positions by 12:00 a.m. Eastern time on October 10, 2026.

In exchange for complying with this wind-down, the state has agreed to withhold enforcement action against Coinbase while related legal appeals proceed before the U.S. Court of Appeals for the Sixth Circuit. The MGCB characterizes these products as unlicensed sports wagering disguised as federally regulated prediction markets. This arrangement follows similar actions taken by Michigan against other entities, including Robinhood Derivatives, LLC and KalshiEX, LLC.

The settlement does not resolve the underlying legal dispute regarding whether Michigan can regulate event contracts registered with the Commodity Futures Trading Commission (CFTC) as gambling. The agreement serves as an operating restriction while the legal question remains pending in the court system.