Prediction markets are pulling back sports contracts in three more states amid mounting state regulatory pressure.
Coinbase agreed Wednesday to stop offering new sports event contracts in Michigan by Oct. 10 and close all remaining positions by the same deadline, according to a press release from the Michigan Gaming Control Board.
Michigan has now secured agreements or court orders halting sports event contracts from Coinbase, Robinhood and Kalshi.
“Coinbase joining Robinhood and Kalshi in stepping back from these unlicensed sports contracts underscores Michigan’s commitment to enforcing its gaming laws,” MGCB Executive Director Henry Williams said. “Operators are halting these activities because they face significant legal consequences for continuing to offer them in our state.”
More prediction markets exit MI
Coinbase sued Michigan regulators earlier this year, arguing its event contracts fall under the exclusive federal jurisdiction of the Commodity Futures Trading Commission.
A judge denied the company’s request for a preliminary injunction in August. Its appeal is pending before the Sixth Circuit.
The agreement allows Coinbase to preserve those legal arguments while the appeals process continues. Michigan, in turn, agreed not to take enforcement action as long as Coinbase complies with the restrictions.
CT prediction markets pull back
The Connecticut Department of Consumer Protection said this week that three of the nine prediction market companies it targeted with cease-and-desist orders last month have stopped operating in the state.
Webull, Gemini and ProphetX have exited, while Polymarket, Coinbase, Crypto.com, Robinhood, Novig and Underdog remain active.
“Our actions sent a clear message,” DCP Commissioner Bryan Cafferelli said on Monday. “We will not tolerate illegal prediction market activity that preys upon the most vulnerable consumers. Three prediction market operators heard that message and are leaving our state accordingly. We are hopeful the rest will decide targeting Connecticut consumers isn’t worth breaking the law.”
Connecticut also sued Kalshi after the company challenged the state’s authority to regulate its sports event contracts. Kalshi argues its contracts are federally regulated swaps, while Connecticut considers them sports wagering subject to state gambling laws.
PrizePicks pauses MO sports markets
PrizePicks also suspended its sports prediction markets in Missouri this week, telling customers the change was due to “updated legal requirements for prediction markets in Missouri.”
Existing entries will remain active and can still pay out, while no new bets can be submitted.
Six companies recently received cease-and-desist orders from Missouri Attorney General Catherine Hanaway, though PrizePicks was not one of them. Those letters went to Kalshi, Polymarket, Robinhood, Underdog, Novig and Crypto.com.
