Michigan pauses Robinhood’s new sports event contracts

Michigan regulators said Robinhood agreed to stop offering new sports-related event contracts to customers in the state by the end of Wednesday, Sept. 9, and to close out any remaining positions by Oct. 9, under a court-approved agreement. The arrangement leaves Robinhood’s broader prediction-markets hub available in Michigan for now.

As covered in April 2025, the Michigan Gaming Control Board had already opened investigations into unlicensed sports prediction markets, saying they bypassed the state’s regulatory framework and consumer protections.

The board said the agreement does not concede either side’s legal position and preserves both sides’ rights and defenses, including Robinhood’s argument that federally structured contracts should not be subject to state regulation. Robinhood’s spokeswoman said the company does not believe the contracts violate state law, but would restrict customers in Michigan from entering new sports-related event positions.

The deal follows a preliminary injunction Michigan Attorney General Dana Nessel secured earlier in the month against KalshiEX, which Ingham County Circuit Court Judge Rosemarie Aquilina said must stop offering, listing, executing, settling or otherwise facilitating sports-event contracts for people located in Michigan. Aquilina also said Kalshi was operating outside Michigan’s patron-protection framework and gave it a “massive and unfair advantage” over licensed operators.

MGCB executive director Henry Williams called the Robinhood agreement “another win for Michigan consumers” and said sports wagering products should only be offered by operators who are licensed, regulated and held accountable under Michigan law. MGCB spokeswoman Lisa Keith said the agreement was a positive step for customers and for the integrity of the state’s regulated gaming market.

According to the board, the agreement will remain in effect until the Sixth Circuit appeals are resolved. Michigan officials also said they will not enforce state sports-betting laws against Robinhood while it complies with the restrictions.