Polymarket Halts Sports Contracts in Michigan After State Pressure

Polymarket US has agreed to cease offering new sports-related event contracts to Michigan customers and close existing positions by November 25, 2026. This follows similar actions taken by Kalshi, Robinhood, and Coinbase in response to regulatory pressure from the Michigan Gaming Control Board.

What Happened

QCX LLC, operating as Polymarket US, entered into a stipulation approved by the U.S. District Court for the Western District of Michigan. Under this agreement, Polymarket US will stop offering new sports event contracts to Michigan customers and close all remaining open positions by the end of Eastern Time on November 25, 2026, as announced by the Michigan Gaming Control Board (MGCB). In return, the state of Michigan has agreed not to pursue enforcement actions against Polymarket US, provided the company adheres to the terms of the stipulation, according to SBC Americas.

This development marks Polymarket as the fourth prediction market platform to discontinue sports contracts in Michigan within a two-month period, following agreements or court orders involving Kalshi, Robinhood, and Coinbase. Michigan’s Attorney General, Dana Nessel, stated that these actions hold the national sports betting industry accountable to Michigan law, asserting that entities wishing to offer sports wagering in the state require a Michigan license. Polymarket reportedly informed its customers via email on October 26, 2026, about the cessation of new sports trades in Michigan.

Polymarket had previously filed a lawsuit against Michigan officials in March to prevent the enforcement of state gaming laws. Its requests for a temporary restraining order and a preliminary injunction were denied by a federal court in March and June, respectively. An appeal of that ruling is currently pending before the Sixth Circuit Court of Appeals. In September, the Michigan Department of Attorney General issued a warning to Polymarket regarding potential legal action if sports contracts continued to be offered to Michigan residents, according to the MGCB release.

Key Details

• Polymarket US agreed to stop new sports event contracts and close open positions for Michigan customers by November 25, 2026, under a federal court-approved stipulation (SBC Americas).
• This agreement is the fourth such action by Michigan regulators, impacting Polymarket, Kalshi, Robinhood, and Coinbase regarding sports event contracts (Michigan Gaming Control Board).
• The stipulation with Polymarket US pauses enforcement actions by Michigan authorities as long as the company remains compliant (SBC Americas).
• Polymarket’s appeal regarding the denial of its preliminary injunction remains pending before the Sixth Circuit Court of Appeals (SBC Americas).

Why It Matters

Michigan’s actions against these prediction market platforms highlight an ongoing jurisdictional dispute over who regulates sports event contracts: state gambling authorities or federal agencies like the Commodity Futures Trading Commission (CFTC). MGCB Executive Director Henry Williams emphasized that Michigan’s approach is proving effective in ensuring that only licensed entities offer sports wagering to its residents, according to the MGCB announcement.

The issue has seen conflicting rulings from federal appellate courts. The Sixth Circuit, in KalshiEX v. Schuler, ruled on September 25 that Ohio and Tennessee gambling laws are not preempted by federal law, vacating an injunction that had protected Kalshi in Tennessee. This followed a similar decision by the Ninth Circuit in Nevada on August 28. Conversely, the Third Circuit ruled in April that Kalshi’s sports contracts are swaps under exclusive CFTC jurisdiction, preempting New Jersey’s gambling laws. New Jersey has since petitioned the U.S. Supreme Court to resolve this circuit split, with support from thirty-nine states, the District of Columbia, the NFL, and over 140 tribes, according to SBC Americas.

What’s Next

The broader legal battle over the regulation of sports event contracts is expected to continue, with Polymarket’s appeal still pending before the Sixth Circuit Court of Appeals. Kalshi’s response to New Jersey’s Supreme Court petition in Flaherty v. KalshiEX is due on November 9, and it has also filed rehearing petitions in the Sixth and Ninth Circuits, citing forthcoming CFTC rules. The CFTC itself proposed classifying qualifying sports, political, weather, and cultural event contracts as swaps on October 9, alongside an interim final rule to exclude state- and tribal-authorized sportsbook and casino wagers from the swap definition, as reported by SBC Americas.