Coinbase To Shut Michigan Sports Event Markets By Oct. 10

Coinbase Financial Markets will stop offering new sports-related event contracts to Michigan customers and close their remaining positions by 12 a.m. ET (0400 UTC) on Oct. 10, as the state challenges whether the products qualify as lawful federally regulated contracts or unlicensed sports betting.

The agreement requires Coinbase to stop offering new sports-related contracts through KalshiEX and other designated contract markets to Michigan residents. The state will not take enforcement action against Coinbase while the company complies and related appeals continue in the U.S. Court of Appeals for the Sixth Circuit.

A federal judge denied Coinbase’s request for a preliminary injunction in August. Michigan has also halted sports-related event contracts involving Robinhood and Kalshi through an agreement or court order.

“Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state,” Michigan Gaming Control Board Executive Director Henry Williams said.

Michigan Attorney General Dana Nessel said the state intends to bring “all sports betting into compliance with the law.” The agreement does not resolve whether Michigan can regulate federally registered event contracts as gambling. Coinbase’s deadline to stop new contracts and close remaining positions is Oct. 10.