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Robinhood stops sports event contracts for users in Michigan

Robinhood has agreed to pause sports contracts in Michigan while legal battles over prediction markets continue in federal court.

Written by the BettingEdgeHub desk, 9 September 2026

Michigan bettors can no longer trade sports contracts on Robinhood following a deal with state officials. U.S. District Judge Paul L. Maloney ordered the platform to stop listing new sports events by the end of Wednesday. The restriction applies to trades cleared through KalshiEX and Rothera Exchange.

Outstanding positions must close soon

Any Michigan customer holding an active sports contract position must close it before the deadline on Oct 9. If users do not settle their positions voluntarily, Robinhood will automatically close them out. In return for compliance, state regulators agreed not to take legal enforcement actions against the trading platform.

Court battles leave rules unclear

This agreement acts as a temporary pause rather than a final legal decision on prediction markets. Robinhood maintains that federal commodities law overrides state gambling regulations for CFTC registered exchanges. The appeal is now grouped with cases involving Polymarket, Coinbase, and Kalshi in the Sixth Circuit court.

Impact on local sports bettors

The pause will remain active until federal appeals are resolved or the state court injunction against Kalshi is lifted. Michigan has now forced two major trading platforms to restrict access to sports contracts for local residents. Punters in the state lose access to these event markets while the courts decide if they count as gambling.