Under a state-court-created compromise agreement, Robinhood has stopped providing new sports-event contracts in Michigan till the appeal pending in federal court is resolved.
According to the stipulation dated September 4, 2026, Robinhood Derivatives has agreed to cease offering new sports event contracts to Michigan customers on approved exchanges such as KalshiEX and Rothera Exchange and Clearing.
In return, Michigan government officials have agreed not to take any legal action against Robinhood. This stipulation allows for a delay in operations while the larger case proceeds.
Robinhood sued Michigan officials in federal court on March 4, 2026, claiming that Michigan gambling law is superseded by the Commodity Exchange Act with respect to event contracts which are traded on CFTC approved exchanges.
On June 17, a federal district court declined Robinhood’s request for a preliminary injunction, and Robinhood appealed the very next day. The case was filed by the Sixth Circuit with No. 26-1542 by June 23. The court later combined Robinhood’s case with that of Polymarket US which was also on appeal.
After the injunction, Michigan’s Department of Attorney General instructed Robinhood to stop trading sports contracts for Michigan customers. Robinhood requested that it be allowed some time to inform customers that manage an orderly closure of existing positions.
