Coinbase agrees to stop offering sports event contracts in Michigan
The company will halt new offerings and close existing customer positions by October 10 under an agreement with Michigan regulators.
Coinbase Financial Markets Inc. has agreed to stop offering new sports-related event contracts to Michigan customers by 12 a.m. ET on October 10 and close all remaining open positions by the same deadline.
The Michigan Gaming Control Board (MGCB) said the agreement covers contracts traded on KalshiEX and other designated contract markets.
In return, the state agreed not to take enforcement action against Coinbase so long as the company remains in compliance, a commitment that holds while related appeals proceed before the US Court of Appeals for the Sixth Circuit.
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"Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan's commitment to enforcing its gaming laws," said MGCB Executive Director Henry Williams.
"Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state."
The agreement follows a nearly identical deal with Robinhood Derivatives and a state-court preliminary injunction obtained against Kalshi.
It does not resolve the underlying legal dispute over whether Michigan may regulate event contracts registered with the Commodity Futures Trading Commission as gambling.
The stipulation preserves all parties' rights, obligations and defenses until the Sixth Circuit or the US Supreme Court issues a final ruling.
A federal judge denied Coinbase's request for a preliminary injunction in August, and the company appealed that ruling to the Sixth Circuit.
That appeal has been stayed pending resolution of related appeals involving Robinhood, Polymarket and Kalshi.
The MGCB described the deal as the latest in a series of actions against unlicensed operators offering sports wagering products presented as federally regulated.
Michigan Attorney General Dana Nessel said the state's efforts are making a clear impression on the illegal sports betting industry.
"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," Nessel said.
"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."
The attorney general's office and the MGCB said they continue to work jointly so that sports wagering in Michigan is offered "only through properly licensed and regulated operators."
The state has now secured agreements or court orders halting sports-related event contracts from Kalshi, Robinhood and Coinbase.
Isabelle Moreau is the editor of Novello Desserts and writes about family life and everyday living in Canada. The editor signs off on corrections and editorial standards.