Robinhood Derivatives halts Michigan sports event contracts in state deal
Robinhood Derivatives has agreed to stop offering new sports-related event contracts in Michigan. The court-approved deal requires the company to halt new sales by September 9 and close outstanding positions by October 9. The state has agreed not to pursue further action against Robinhood. The halt will remain at least until the U.S. Court of Appeals for the Sixth Circuit rules on the legality of sports-linked event contracts.
Robinhood's retreat extends Michigan's crackdown beyond Kalshi to a second federally registered platform. The Sixth Circuit now holds the fate of two major venues in one state, and its ruling on federal preemption will directly shape whether other state attorneys general can replicate Michigan's template. Robinhood traders lose access to sports-linked positions while competitors face identical exposure across pending suits in Nevada, Connecticut, and New Jersey.
The platform had been expanding its event-contract offerings; this forced pause shrinks its addressable market before the product line gains scale. A Sixth Circuit loss would embolden parallel actions elsewhere, fragmenting national liquidity into a patchwork of state-specific bans and licensed carve-outs. The October 9 closeout deadline gives Robinhood users weeks to exit, but no guarantee of return.