Robinhood halts sports event contracts in Michigan

Robinhood has reached a court-approved agreement to halt the offering of new sports-related event contracts to customers in Michigan. Under the terms of the agreement, which was approved by U.S. District Judge Paul L. Maloney, any existing customer positions must be closed by October 9, unless the customer chooses to close them voluntarily before that date.

In exchange for complying with the restriction, Michigan officials have agreed not to pursue enforcement actions against Robinhood regarding these specific contracts. The agreement does not resolve the broader legal dispute; Robinhood maintains that its products are financial derivatives regulated by the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act, rather than sports wagering products subject to state gambling laws.

This regulatory action follows similar efforts by Michigan officials against other prediction market operators, such as Kalshi, as the state seeks to ensure that sports wagering products are offered only through licensed and regulated operators.