Robinhood Derivatives has stopped offering new sports event contracts to Michigan customers and must close out every open position by October 9, under a court-approved deal with the state. The Michigan Gaming Control Board announced the agreement on September 9, making Robinhood the second platform this year, after Kalshi, to pull sports contracts from Michigan.

The deal is written into a stipulation and order signed by U.S. District Judge Paul L. Maloney of the Western District of Michigan, dated September 4. New contracts had to stop by the end of September 9, Eastern time.

A Pause, Not a Surrender

The terms are narrow and practical. Robinhood can’t offer new sports-related contracts in the state on any designated contract market, and the order names the exchanges run by KalshiEx and Rothera Exchange and Clearing. In return, Michigan officials will hold off on enforcement against Robinhood for as long as it complies.

Nobody conceded anything. The agreement is without prejudice, so Robinhood keeps its argument that the Commodity Exchange Act puts its federally regulated contracts beyond state gambling law, and Michigan keeps its view that a bet on a game is a bet.

How Long It Lasts

The pause ends on the first of two events. One is a final resolution of the Sixth Circuit appeals, including any Supreme Court proceedings. The other is the dissolution of the state-court injunction Michigan won against Kalshi.

Henry Williams, MGCB executive director, called it “another win for Michigan consumers.” “Sports wagering products should only be offered by operators who are licensed, regulated, and held accountable under Michigan law,” he said. Attorney General Dana Nessel said her priority had been “protecting Michigan consumers from exploitative practices and ensuring betting in our state remains fair and regulated.”

Six Months of Litigation Got Here

Robinhood started this fight. It filed its complaint against Nessel, the MGCB and other state officials on March 4, then asked for a preliminary injunction on March 9. Maloney denied that request on June 17, saying Congress had not made the “clear statement” needed to displace the states’ traditional power over gambling.

Robinhood appealed the next day. On July 2 the Sixth Circuit consolidated its appeal with one brought by Polymarket US, and Coinbase filed a separate Sixth Circuit appeal on August 10.

The Kalshi Injunction Changed the Math

The real pressure came from state court. An Ingham County Circuit Court judge granted Nessel a preliminary injunction against Kalshi, barring it from offering sports-related contracts to anyone in Michigan and requiring a geolocation provider licensed by the MGCB. The penalty for breaking it is up to $500,000 for each day of noncompliance.

That matters for Robinhood because Kalshi is the exchange listing the contracts, and Robinhood is a consumer-facing distribution channel for them. After the Kalshi order, the Attorney General’s office asked Robinhood to stop its Michigan customers trading sports contracts, and Robinhood asked for time to tell those customers. The October 9 deadline gives them that window.

For Michigan bettors, the short version is simple. The prediction market route to a football bet is closing, and the licensed sportsbooks are what’s left.

The Sixth Circuit Holds the Answer

Every road in this dispute now runs through Cincinnati. The Sixth Circuit heard oral argument on July 30 in Kalshi’s consolidated appeal from cases in Ohio and Tennessee, and it has the Robinhood, Polymarket and Coinbase appeals as well.

Elsewhere the courts are split. The Third Circuit sided with Kalshi against New Jersey in April, the Ninth Circuit ruled against it in Nevada on August 28, and New Jersey has asked the Supreme Court to settle it. Michigan’s approach to the wider state-by-state fight has been to act first and argue later.

Robinhood’s Michigan customers have until October 9 to close what they hold. The deal ends only when the Sixth Circuit rules, the Supreme Court does, or the Kalshi injunction falls.