Robinhood has agreed to stop offering new sports-related event contracts to customers based in Michigan. The change took effect on September 9, 2026, and any remaining customer positions in the state must be closed by October 9 under an agreement approved by a federal court.
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What the Agreement Requires
US District Judge Paul L. Mahoney of the Western District of Michigan signed the agreement on September 4, setting two main deadlines for Robinhood.
The company had until the end of September 9 to stop offering new sports related event contracts to Michigan customers. The restriction applies to contracts traded on any Designated Contract market, including those operated by KalshiEX and Rothera Exchange and Clearing.
Michigan customers who already held positions were allowed to keep them temporarily, however all remaining positions must be closed by the end of October 9 unless they choose to close them earlier.
In return, Michigan officials, including Attorney General Dana Nessel and Michigan Gaming Control Board (MGCB) Executive Director Henry Williams, agreed not to take enforcement action against Robinhood while the company follows the terms of the agreement.
Why Michigan Is Taking Action
The agreement comes as Michigan regulators take broader action against sports-related event contracts. Earlier in September, Michigan's Attorney General secured a preliminary injunction against Kalshi in Nessel v. KalshiEX. The Ingham County Circuit Court order prevents Kalshi from offering or listing sports-related event contracts to people in Michigan.
Kalshi must also use third-party geolocation technology to block access in the state. Failure to follow the order could result in a penalty of $500,000 per day.
Robinhood is now another platform forced to withdraw these products from the state. Both cases reflect Michigan's position that sports wagering products should only be offered by operators licensed under Michigan law.
What the Deal Doesn't Settle
The agreement does not settle the larger legal dispute over prediction market sports contracts. Neither Robinhood nor Michigan has given up its legal position, as Robinhood continues to argue that its federally regulated contracts are outside the reach of state gambling laws.
The restrictions are expected to remain in place while related appeals involving Robinhood, Polymarket, Coinbase and Kalshi move through the Sixth Circuit. The could remain in effect through any Supreme Court review if one is requested.
For now, Michigan has successfully restricted another major prediction platform from offering sports event contracts in the state, but the larger question of whether federal law overrides state gambling laws for these products remains unresolved.
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