Robinhood has stopped offering new sports-related event contracts to customers in Michigan under a court-approved agreement with state officials, adding another major prediction-market platform to the state’s growing regulatory crackdown.
The agreement, signed by US District Judge Paul L. Maloney on September 4, requires Robinhood to stop making new sports event contracts available to Michigan customers. Any existing sports-related positions that customers do not close themselves must be shut by the end of October 9.
In return, Michigan officials have agreed not to pursue enforcement action against Robinhood over its sports contracts while the company complies with the arrangement. The stipulation does not resolve the underlying dispute and explicitly preserves the legal rights and defenses of both sides.
That distinction is important because Robinhood continues to challenge Michigan’s authority over prediction markets. The company argues that sports event contracts traded on federally regulated designated contract markets fall under the Commodity Exchange Act and the jurisdiction of the Commodity Futures Trading Commission, rather than state gambling legislation.
Michigan takes the opposite position. State officials have argued that sports-related prediction contracts offered to residents function as gambling products and therefore must comply with Michigan’s gambling laws and licensing framework.
Robinhood launched its federal case against Michigan Attorney General Dana Nessel, the Michigan Gaming Control Board and other state officials in March 2026. It sought a preliminary injunction that would have prevented the state from applying its gambling laws to Robinhood’s sports contracts, but Judge Maloney rejected that request on June 17. Robinhood subsequently appealed to the US Court of Appeals for the Sixth Circuit.
The appeal focuses heavily on whether federal commodities law preempts Michigan gambling rules when event contracts are traded through CFTC-regulated exchanges. Robinhood’s case has also become part of a wider group of legal disputes involving prediction-market operators, including Polymarket and Kalshi.
Michigan has taken an increasingly aggressive approach toward sports prediction markets. State authorities maintain that federally regulated event-contract platforms cannot use CFTC oversight to bypass state rules governing sports wagering.
The Michigan restriction comes even as Robinhood continues expanding prediction markets elsewhere in the United States. On September 8, the company announced an agreement with Crypto.com and OG.com that will allow selected football event contracts to be routed through OG.com’s federally regulated exchange. Robinhood said 13.6 billion event contracts were traded through its platform during the second quarter of 2026, highlighting the growing importance of prediction markets to its business.
For Michigan customers, however, sports event trading will remain unavailable under the current arrangement while the broader federal court battle over the regulatory status of prediction markets continues.