Coinbase has come to an agreement with the Michigan Gaming Control Board (MGCB) to discontinue its offerings of sports event contracts in the state, as announced by the regulator on Wednesday.
As part of the agreement, Coinbase has committed to refrain from listing any new sports markets and to close all open sports trades by 12 a.m. Eastern Time on October 10. In exchange, the state has agreed not to take enforcement action against Coinbase during the ongoing appeal process in the U.S. Court of Appeals for the Sixth Circuit.
Michigan Attorney General Dana Nessel remarked, “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.” She emphasized that the state’s gaming laws are designed to maintain fairness and regulation in gaming activities.
SBC Americas attempted to contact Coinbase for comments but did not receive a response.
In September, Robinhood reached a similar agreement with the MGCB, agreeing to remove its sports markets from the state by October 9. Additionally, a state court judge ordered Kalshi to cease its sports trading and advertising operations in Michigan at the beginning of September and to geoblock the state with licensed geolocation services.
Henry Williams, Executive Director of the MGCB, stated in a press release on October 7, “Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws. Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”
The MGCB clarified that this agreement does not settle the ongoing legal question regarding its authority to regulate event contract trading on exchanges registered with the Commodity Futures Trading Commission.
Coinbase's agreement follows a denial of its request for a preliminary injunction against Michigan officials in August. Earlier, Coinbase had filed a lawsuit against the MGCB and other state officials, including Attorney General Nessel, in federal court in December 2025. This lawsuit aimed to prevent state authorities from enforcing civil or criminal actions against the exchange due to its offering of sports event contracts.
The court complaint noted that the MGCB had been investigating prediction market platforms, including Kalshi, which Coinbase hosts. The company argued that multiple cease-and-desist letters sent by the MGCB indicated a likelihood of enforcement actions against Coinbase.
In August, a federal judge denied Coinbase’s motion for a preliminary injunction, rejecting the company's assertion that the Commodity Exchange Act’s definition of swaps completely preempts state gambling laws, and that Coinbase would suffer irreparable harm without the ability to offer sports predictions in Michigan.
Following this setback, Coinbase promptly appealed the decision to the Sixth Circuit, which has been stayed pending resolution of related appeals concerning other prediction market companies.
Currently, indications suggest that Coinbase may face an uphill battle in the appellate court. Recently, the Sixth Circuit issued a unanimous opinion concerning Kalshi’s sports event contracts, determining that they do not qualify as swaps under federal commodities law and that Ohio and Tennessee can enforce their sports betting laws. The opinion highlighted that Kalshi had not proven that its contracts meet the definition of swaps, which could also impact how bets are classified at sportsbooks and casinos.
Subsequently, the Ohio Casino Control Commission issued cease-and-desist letters to ten prediction market operators, including Coinbase, over their alleged participation in illegal sports event contracts in the state.
