Michigan gaming regulators have agreed to stop Robinhood from allowing customers in the state to enter new sports-related event contract positions and to close remaining customer positions by October 9. This decision comes as legal challenges involving prediction market operators continue in state and federal courts.
“The Michigan Gaming Control Board welcomes Robinhood’s agreement to stop offering new sports-related event contracts to Michigan customers and to close out remaining customer positions by October 9,” said Lisa Keith, MGCB spokeswoman. “This is a positive step for Michigan customers and for the integrity of our state’s regulated gaming market.”
Under the agreement, Michigan officials will refrain from enforcing state sports betting laws against Robinhood while the company complies with the restrictions. Robinhood will, however, continue to provide customers access to its broader prediction markets hub.
The arrangement will remain in effect until a final resolution of cases before the U.S. Court of Appeals for the Sixth Circuit involving Robinhood, Coinbase, and Kalshi, including any U.S. Supreme Court proceedings if a party seeks a writ of certiorari.
“While we do not believe these contracts violate any state laws, beginning on (Wednesday), we will restrict customers in Michigan from entering new sports-related event contract positions,” said a Robinhood spokeswoman in a statement emailed to CDC Gaming.
Keith said the agreement reflects the state’s position that sports betting should be offered only through licensed and regulated operators subject to the same consumer-protection and integrity requirements as other licensees.
Robinhood’s action comes less than a week after Michigan Attorney General Dana Nessel secured a preliminary injunction against Kalshi. Ingham County Circuit Court Judge Rosemarie Aquilina ordered Kalshi to stop offering, listing, executing, settling, or otherwise facilitating sports-event contracts for people located in Michigan.
Kalshi operates outside the comprehensive patron-protection mechanisms established under Michigan’s regulatory framework, and its failure to comply with state gaming law gives it a “massive and unfair advantage” over licensees operating under the state’s regulatory structure.
The court also required Kalshi to use a third-party geolocation provider licensed by the MGCB to prevent Michigan residents and anyone physically located in the state from accessing its sports-event contracts.