Michigan regulatory actions against sports event contracts

Michigan regulators have secured agreements with financial platforms to halt the offering of sports-related event contracts within the state.

In September 2026, Robinhood reached a court-approved agreement to stop offering new sports contracts to Michigan customers. Under the terms approved by U.S. District Judge Paul L. Maloney, existing positions were required to be closed by October 9. In exchange, Michigan officials agreed not to pursue enforcement actions regarding these specific contracts. Robinhood continues to maintain that its products are “financial derivatives regulated by the Commodity Futures Trading Commission (CFTC)” rather than sports wagering products.

By October 2026, Coinbase Financial Markets, Inc. entered a similar stipulation with the Michigan Gaming Control Board (MGCB). Coinbase must cease listing new contracts and close all open customer positions by October 10, 2026. The MGCB characterizes these products as “unlicensed sports wagering disguised as federally regulated prediction markets.”

While these settlements prevent immediate enforcement actions, they do not resolve the fundamental legal dispute regarding whether Michigan can regulate CFTC-registered event contracts as gambling. The matter remains pending in the court system, including appeals before the U.S. Court of Appeals for the Sixth Circuit.