Michigan judge denies Polymarket and Robinhood injunction in sports contract case
U.S. District Judge Paul Maloney denied preliminary injunction requests from Polymarket and Robinhood in a Michigan case, ruling that sports event contracts likely are not swaps under federal law and fall outside CFTC authority. In a June 17, 2026 order, Maloney stated that sporting event contracts are not financial derivatives or swaps, rejecting the platforms' argument that federal oversight should preempt Michigan's gambling laws. The ruling leaves Polymarket exposed to state gambling enforcement and blocks its effort to operate sports contracts in Michigan under its CFTC designation. The case now heads to the Sixth Circuit Court of Appeals.
Polymarket must now defend its Michigan sports contracts in state gambling enforcement proceedings despite its CFTC registration, and the Sixth Circuit appeal will test whether other states can replicate Michigan's success.
The Michigan ruling joins Kentucky AG Coleman's gambling suit against Kalshi and Polymarket as the second recent state-level enforcement victory against CFTC-registered platforms this week.