Robinhood Agrees to Halt Sports Event Contracts in Michigan During Appeal

DETROIT – Robinhood has agreed to stop offering new sports-related event contracts to Michigan customers while its federal court challenge continues.

The restriction took effect Sept. 9, and any Michigan customer positions that remain open must be closed by Oct. 9 under the court-approved agreement.

The agreement between Robinhood Derivatives and Michigan officials was approved by U.S. District Judge Paul L. Maloney on Sept. 4. It follows state action against Kalshi and adds another platform to Michigan’s effort to regulate sports event contracts under its gambling laws.

Robinhood Must Close Remaining Positions by October 9

Under the Michigan Gaming Control Board announcement, Robinhood stopped offering new sports-related event contracts in Michigan by the end of Sept. 9. Customers can voluntarily close existing positions before Oct. 9, after which Robinhood must close any that remain open.

Michigan officials agreed not to bring enforcement actions against Robinhood over those sports contracts while the company complies with the arrangement. The deal does not resolve the underlying legal dispute or require either side to abandon its arguments.

“This agreement is another win for Michigan consumers,” Michigan Gaming Control Board Executive Director Henry Williams said. Williams maintained that sports wagering products should be offered through operators licensed and regulated under Michigan law.

The action follows a Michigan court order against Kalshi, which initially restricted the prediction market operator’s sports products in June. A preliminary injunction signed Sept. 1 now bars Kalshi from offering, facilitating or promoting sports-related event contracts to people in Michigan while that litigation proceeds.

Federal Appeals Will Determine How Long Agreement Lasts

Robinhood argues that contracts offered through federally regulated designated contract markets fall under the Commodity Futures Trading Commission’s jurisdiction and are not subject to Michigan’s sports betting requirements. Michigan disputes that interpretation and considers the sports contracts a form of wagering subject to state licensing and consumer-protection rules.

Robinhood previously sought a preliminary injunction that would have prevented Michigan officials from enforcing state law against its sports event contracts. Maloney denied that request in June, and Robinhood appealed to the Sixth Circuit, where its case has been consolidated with an appeal involving Polymarket.

The Sept. 4 agreement is designed to remain in place while related appellate litigation develops. Under its terms, the restrictions may end following final resolution of specified Sixth Circuit cases, including potential Supreme Court proceedings, or if the Michigan state-court injunction against Kalshi is dissolved.

The dispute is part of a broader national fight over whether sports prediction markets fall primarily under federal commodities regulation or traditional state gambling oversight. The Ninth Circuit recently backed Nevada’s regulatory authority, while other federal courts have reached different conclusions on related preemption questions.

Detroit Casino Licenses Renewed Separately

In separate regulatory action announced Sept. 9, the MGCB also unanimously renewed the annual operating licenses of MGM Grand Detroit, MotorCity Casino and Hollywood Casino at Greektown. The board said it reviewed each property’s financial standing, operations and compliance with responsible gaming requirements before approving the renewals.

The three Detroit casino licenses will next come up for renewal in September 2027. The licensing decision is unrelated to the Robinhood litigation but was announced as Michigan continued broader oversight of its regulated gambling market.

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