Polymarket US has agreed to cease offering new sports event contracts to customers in Michigan and will close all open positions by November 25, following a stipulation approved by the U.S. District Court for the Western District of Michigan. This move marks Polymarket as the fourth major prediction market platform to withdraw from the state's sports betting landscape, joining Kalshi, Robinhood, and Coinbase in this regulatory retreat.
The agreement was announced by the Michigan Gaming Control Board (MGCB) on Wednesday, which highlighted the state's ongoing efforts to regulate sports betting effectively. As part of the deal, the state will refrain from taking enforcement actions against Polymarket as long as it complies with the stipulation.
"Polymarket joining Kalshi, Robinhood, and Coinbase in stepping back from these unlicensed sports contracts shows that Michigan's approach is working," said MGCB Executive Director Henry Williams. He emphasized that any entity wishing to engage in sports wagering in Michigan must possess a Michigan license.
Polymarket’s decision follows a challenging legal landscape in which it unsuccessfully sought to block Michigan's gaming laws after suing state officials in March. The court denied Polymarket's request for a temporary restraining order and a preliminary injunction, decisions that are currently pending appeal in the Sixth Circuit Court of Appeals.
In September, the Michigan Department of Attorney General warned Polymarket of potential legal action if it did not halt its sports contracts in the state. Attorney General Dana Nessel commented on the state's efforts, stating, "One by one, from Kalshi to Robinhood and Coinbase, and this latest agreement with Polymarket, we’re holding the national sports betting industry accountable to Michigan law."
Prior to Polymarket's agreement, Judge Rosemarie Aquilina issued a temporary restraining order against KalshiEX, declaring its operations a violation of the Lawful Sports Betting Act. The court later converted this order into a preliminary injunction. Similar stipulations were reached with Robinhood Derivatives and Coinbase Financial Markets, which also agreed to halt their sports contracts in Michigan in the weeks preceding Polymarket's announcement.
The scope of the legal battle expands as the Sixth Circuit has sided with state authorities in recent rulings, rendering preemption arguments less favorable for these platforms. This follows a contrasting decision from the Third Circuit which sided with Kalshi. New Jersey has petitioned the Supreme Court to resolve the emerging legal discrepancies, with a response from Kalshi expected on November 9.
Further complicating matters, the Commodity Futures Trading Commission (CFTC) is proposing to classify sports contracts as swaps, thus affirming its oversight while simultaneously suing multiple states to solidify its jurisdiction. CFTC Chairman Michael Selig asserts this authority under the Commodity Exchange Act.
