Coinbase pulls sports-event contracts in Michigan deal
The deal leaves the core fight over who can regulate event contracts unresolved.
The hit
Coinbase has agreed to stop offering new sports-event contracts to Michigan customers by midnight Saturday, according to the Michigan Gaming Control Board. The company will also close out all remaining open positions by that deadline.
Why it matters
The state will not take enforcement action against Coinbase so long as the company stays compliant & related appeals proceed before the Sixth Circuit, according to the MGCB. The underlying legal question is unresolved: can Michigan treat federally registered event contracts as gambling? Bettors on Kalshi-linked sports contracts through Coinbase lose access in the state, but the industry-wide fight over jurisdiction keeps running in federal court.
The record
| Deadline to halt new contracts & close positions | Midnight Saturday (Michigan Gaming Control Board) |
|---|---|
| Other operators that settled with Michigan | Robinhood Derivatives LLC |
| Court action against third operator | Preliminary injunction obtained against KalshiEX LLC |
| Coinbase’s court setback | Preliminary injunction request denied in August |
What happens next
Coinbase’s appeal is stayed pending related cases involving Robinhood, Polymarket & Kalshi. A final ruling from the Sixth Circuit, or the Supreme Court, will decide if Michigan can regulate these contracts at all.
Sources: Michigan: Coinbase halts sports-event contracts in settlement with regulators – CDC Gaming
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