Robinhood has temporarily halted the offering of new sports-event contracts in Michigan, pending the resolution of an ongoing appeal in federal court. The company, under a stipulation established by a state court on September 4, 2026, will not provide these contracts to Michigan customers through approved exchanges like KalshiEX and Rothera Exchange and Clearing.
In exchange for this cessation of new business, Michigan officials have agreed not to pursue legal action against Robinhood. This arrangement enables the company to delay its operations while the larger legal dispute continues.
The backdrop to this decision involves a lawsuit that Robinhood filed against state officials on March 4, 2026. The lawsuit contends that Michigan's gambling law should not apply to event contracts traded on exchanges sanctioned by the Commodity Futures Trading Commission (CFTC).
Following Robinhood's request for a preliminary injunction on June 17, a federal district court denied the request. The next day, Robinhood filed an appeal, leading to the case being assigned to the Sixth Circuit with the designation No. 26-1542 by June 23. The court later consolidated Robinhood's appeal with that of Polymarket US, which is also in the appeals process.
After the injunction’s denial, the Michigan Department of Attorney General mandated that Robinhood discontinue trading sports contracts for its Michigan clientele. In response, Robinhood sought additional time to notify customers, aiming for an orderly winding down of existing contracts.
