Vardan Khachatryan
Robinhood in Michigan
Not available for sports contracts.
- Sports contracts
- Not available
- Other contracts
- Available
- Regulator
- CFTC: offers event contracts through Robinhood Derivatives, a CFTC-registered futures commission merchant, on Kalshi, ForecastEx, CDNA and Rothera
- Rulings and actions in Michigan
- 3 on record, listed in the timeline
- New sports contracts
- Stopped September 9, 2026
- Open sports positions
- Must close by October 9, 2026
- Federal appeals court
- Sixth Circuit: ruled against Kalshi on September 25, 2026
- Last change
- September 25, 2026
Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.
Open RobinhoodWhy Robinhood is legal in Michigan, minus sports
Robinhood's stocks and crypto are not the issue here. The question is its prediction market hub.
Robinhood sells event contracts through Robinhood Derivatives, a broker registered with the CFTC. It routes orders to exchanges such as Kalshi, ForecastEx and Rothera.
That federal registration keeps the hub open in Michigan. The fight is only about sports.
Michigan says sports event contracts are unlicensed betting. Robinhood disagrees, but it agreed to stop them here while the courts decide.
No court found Robinhood broke the law. The pause is a deal, and it has an end date built in.
What you can trade on Robinhood from Michigan
Everything in the hub except sports. Politics, economics, crypto, culture and weather contracts stay open.
Election contracts for the November 3 midterms are still there. Michigan picks a governor and a US senator that day.
Sports are closed to new trades. Since September 9, Michigan customers cannot open a position on the Lions, Pistons or Wolverines.
Existing sports positions have a deadline. Anything opened by September 9 must be closed by October 9. Robinhood has agreed to close what is left.
If you hold one, you can sell before then, if someone is buying. Selling costs fees too.
How Robinhood works for Michigan traders
Every contract is a yes-or-no question priced from 1¢ to 99¢. A winner pays $1, and a loser pays nothing.
Say an election contract costs 60¢. You buy 100 contracts for $60.
Two fees apply. Robinhood's commission is 10% × price × (1 − price), capped at 1¢ a contract, so $1. If the contract trades on Kalshi, Kalshi adds 1¢ a contract, another $1.
If you win, you collect $100, a $38 profit. If you lose, you are out $62.
The same trade on Kalshi's own app costs $1.68 in fees. At this price, Robinhood Gold's lower rate saves nothing, because the 1¢ cap still binds.
Our Robinhood fees guide has every rate.
What Michigan has said about Robinhood
Michigan never sued Robinhood. Robinhood went to court first, then settled into a truce.
After a state judge blocked Kalshi's sports contracts, the attorney general's office asked Robinhood to stop too. Robinhood agreed within days.
“This agreement is another win for Michigan consumers,” said Henry Williams, who runs the Gaming Control Board.
Attorney General Dana Nessel said her priority is “protecting Michigan consumers from exploitative practices.”
Robinhood did not concede the point. It said it does not believe the contracts “violate any state laws,” and its appeal continues.
Robinhood's case against Michigan, explained
The case is Robinhood Derivatives, LLC v. Nessel, No. 1:26-cv-00730, in federal court in western Michigan.
Robinhood filed it on March 4, 2026, a day after Michigan sued Kalshi. It argued federal law leaves Michigan's gambling laws no role.
Judge Paul L. Maloney denied a preliminary injunction on June 17. He ruled against Polymarket US the same day.
Robinhood appealed the next day. Its Sixth Circuit case, No. 26-1542, was joined with Polymarket's on July 2.
Then came the Kalshi injunction in state court. On September 4, Robinhood and the state signed a stipulation, and Judge Maloney made it an order.
Robinhood stops new sports contracts on every exchange it uses, Kalshi and Rothera included. In return, Michigan holds off on enforcement while Robinhood complies.
Neither side gave up its legal position. The order says so in plain terms.
What could change Robinhood's status in Michigan
The deal ends at the first of two events. One is the final outcome of the Sixth Circuit appeals, including any Supreme Court review.
The other is the end of the state court's injunction against Kalshi.
An ending does not bring sports back by itself. If the courts side with Michigan, the state can simply enforce its law.
The latest ruling points that way. On September 25, 2026, the Sixth Circuit ruled against Kalshi in Ohio and Tennessee.
It held sports contracts are not swaps, the argument Robinhood's own appeal relies on. The Supreme Court could still settle it for every state.
Robinhood has asked it to review a Nevada loss, and New Jersey has asked it to review a Kalshi win. Our litigation tracker follows each case.
Robinhood in Michigan: timeline
Every change to Robinhood's position in Michigan, newest first. Each entry links the ruling or report behind it.
How Robinhood compares to sports betting in Michigan
Sports betting is legal in Michigan. The Lawful Sports Betting Act passed in December 2019, and online books launched in January 2021.
Each sportsbook partners with one of the three Detroit casinos or one of 12 tribes. They pay an 8.4% state tax on online sports revenue.
They also must turn away anyone under 21. Robinhood's event contracts start at 18, and its broker holds no Michigan gaming license.
The mechanics differ too. A sportsbook sets odds and takes your wager. On Robinhood, the exchange matches you with another trader.
For now, a licensed sportsbook is the only legal way to put money on a Lions game in Michigan.
Other prediction market apps in Michigan
Robinhood was the second app to pull sports from Michigan this year. Kalshi's sports contracts were first, under a state court order.
Coinbase and Webull sell Kalshi's contracts, so that order reaches them. Polymarket US is still fighting, with no order against it.
DraftKings and FanDuel run licensed sportsbooks here, so their prediction apps skip sports. For the full picture, see prediction markets in Michigan.
| App | Status in Michigan | More |
|---|---|---|
| Kalshi | Not available for sports contracts | Is Kalshi legal in Michigan? |
| Gemini Predictions | Available, sports included | Gemini Predictions review |
| Polymarket US | Contested for sports contracts, with no restriction in force | Is Polymarket legal in Michigan? |
| OG | Available, but not for sports contracts | OG review |
| Interactive Brokers | Available; it lists no sports contracts anywhere | Interactive Brokers review |
| ProphetX | Available, sports included | ProphetX review |
| Coinbase | Available, but not for sports contracts | Coinbase review |
| Webull | Available, but not for sports contracts | Webull review |
| Novig | Not available | Novig review |
| DraftKings Predictions | Available, but not for sports contracts | DraftKings Predictions review |
| Fanatics Markets | Not available | Fanatics Markets review |
| FanDuel Predicts | Available, but not for sports contracts | FanDuel Predicts review |
| PrizePicks | Available, but not for sports contracts | PrizePicks review |
| Underdog Predict | Not available | Underdog Predict review |
How to use Robinhood's prediction markets in Michigan
You need a Robinhood account, a valid Social Security number, a US address and an age of 18 or more.
Event contracts need a second approval inside the app. Search for “Prediction markets,” open any event and tap Yes or No to apply.
Fund it by bank transfer, debit card or wire. Trading happens only in the iOS and Android apps.
One caution: event-contract cash is not SIPC or FDIC protected, unlike your stock account. It sits in a segregated account under CFTC rules instead.
Read our Robinhood review for payouts and fees. To weigh it against the exchange it routes to, see Kalshi vs Robinhood.