Michigan Judge Rejects Coinbase Bid to Block Sports-Contract Enforcement

Event contracts let users take binary positions on outcomes such as sports results. Coinbase argues the products are derivatives governed exclusively by the U.S. Commodity Futures Trading Commission under the Commodity Exchange Act, while Michigan considers them unlicensed sports betting subject to state gambling law. The dispute is significant because its outcome could determine whether Coinbase and other prediction-market operators can offer sports contracts nationwide without securing licenses in each state.

U.S. District Judge Shalina D. Kumar in Michigan on Aug. 7, 2026, denied Coinbase Financial Markets’ request for a preliminary injunction blocking Attorney General Dana Nessel and the Michigan Gaming Control Board from enforcing state law. Kumar sharply rejected Coinbase’s statutory reading, invoking “applesauce” to characterize its argument. The order leaves Michigan free to proceed while the litigation continues, dealing Coinbase its latest setback after the company sued the state on Dec. 18, 2025, before launching prediction markets in January.