Michigan's Stipulations: Exiting a State Without Conceding the Law
October 15, 2026 · How we source this
Robinhood and Coinbase each agreed to stop sports event contracts in Michigan while preserving their preemption defenses. Here is how a stipulated standstill works and what it does and does not settle.
Two operators, one template
The Michigan Gaming Control Board announced on October 7, 2026 that Coinbase Financial Markets, Inc. agreed by stipulation to stop listing new sports-related event contracts for Michigan customers. Open positions were to be closed out by 12:00 a.m. Eastern on October 10, 2026.
Trade press reports that Robinhood Derivatives, LLC reached a nearly identical, court-approved agreement announced September 9, with positions closed by October 9. The MGCB described Robinhood as the second platform to withdraw in 2026, after Kalshi.
What a stipulated standstill is
A stipulation is an agreement between litigants, here a state regulator and an operator, that sets conduct rules while the underlying dispute continues. It is not a judgment on the merits.
In Michigan, the operator stops the contested activity and the state agrees to withhold enforcement while the operator stays in compliance. Neither side gives up its legal position.
What the operators keep
Reports on the Robinhood agreement say it preserves both sides' rights and defenses, including Robinhood's argument that federally structured contracts are not subject to state regulation. The Coinbase terms, as summarized in press coverage, likewise leave open whether Michigan may regulate CFTC-registered event contracts as gambling.
That matters because the preemption question is already before the Sixth Circuit. Coinbase's request for a preliminary injunction was denied in August 2026, and its appeal is stayed pending the related Robinhood, Polymarket and Kalshi appeals.
Why an operator would take the deal
The alternative is continued litigation with enforcement exposure. The MGCB's executive director, Henry Williams, said operators are halting these activities because they face significant legal consequences for continuing to offer them in the state.
A standstill caps that exposure without a ruling against the operator. It also avoids creating a record that a state could cite in other jurisdictions.
What it means for compliance teams
For operators, the Michigan agreements show a repeatable exit path that keeps preemption arguments alive for appeal. For state regulators, they deliver the practical outcome of an injunction without a merits win.
Teams tracking state exposure should note that the terms rest on press summaries of the MGCB release, and the stipulation texts should be checked before relying on specific deadlines or conditions. This is analysis of public regulatory activity, not legal advice.