Polymarket has agreed to stop offering new sports-related event contracts to Michigan customers, handing the state another win in its push against unlicensed sports wagering. The deal comes months after a federal judge refused to shield the prediction-market company from Michigan regulators. It also leaves the company's appeal to a higher court hanging in the background.
The Michigan Gaming Control Board said QCX LLC, doing business as Polymarket US, agreed to stop offering new sports-related event contracts to Michigan customers. The board's announcement also describes a requirement to close out remaining open customer positions by Nov. 25, 2026. The Detroit News reports the same deadline.
Attorney General Dana Nessel announced the agreement on Wednesday, according to the Detroit News report. She said Michigan is holding the national sports betting industry accountable to Michigan law, and that the state is protecting residents by ensuring gaming is licensed and regulated, with safeguards provided by law. In return, Michigan agreed not to take enforcement action against Polymarket while it complies, the paper reports.
How Polymarket Lost the First Round
Polymarket had sued Michigan in federal court, seeking an order blocking the state from enforcing its gaming laws against the prediction market. That request did not go well. MLive reports that U.S. District Judge Paul Maloney in Kalamazoo rejected Polymarket's motion for a preliminary injunction on June 17.
Maloney concluded that the company's “sports-related products do not fall within the statutory definition of ‘swap,’” he wrote. He also wrote that regulating gambling “is at the heart of states' police powers.” Polymarket filed notice that it would appeal to the Sixth Circuit Court of Appeals in Cincinnati.
The Detroit News reports that the agreement was approved by a federal district court judge. The Michigan Attorney General's Office had also told Polymarket on Sept. 10 that it would take legal action if the company did not stop offering sports-related event contracts, the paper reports.
Michigan's String of Platform Wins
Polymarket is not the first name on this list. Per the Detroit News, Michigan reached similar stipulations with Coinbase Financial Markets and Robinhood Derivatives. Gaming.net reports that the Robinhood deal was signed by Maloney in a stipulation and order dated Sept. 4, and that the Sixth Circuit consolidated Robinhood's appeal with the one brought by Polymarket US on July 2.
Before that, Nessel went after Kalshi. According to MLive, she filed suit in Ingham County Circuit Court in March, alleging that KalshiEx LLC offered unlawful online sports wagers to Michigan residents. The Detroit News reports that Kalshi maintained it is subject to exclusive federal jurisdiction, but that Judge Rosemarie Aquilina ordered it to stop offering wagers similar to sports bets in June. She said Kalshi's noncompliance gave it a massive and unfair advantage over regulated online sports betting businesses and casinos, the paper reports.
What Regulators Expect Next
Michigan Gaming Control Board official Henry Williams said all operators are expected to respect Michigan's regulatory framework, and that offering sports wagering to Michigan residents requires a Michigan license, per the Detroit News. State law backs up that stance, since the Michigan Legislature text on internet sports betting treats operating, conducting or offering it, including through a mobile application, as gaming activity that already occurs illegally in the state.
