Polymarket to Halt Michigan Sports Contracts by Nov. 25

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Thu Oct 29, 2026, 11:00 am ET

Read Time: 4 minutes

Polymarket to Halt Michigan Sports Contracts by Nov. 25

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Polymarket US has agreed to halt its sports event contracts in Michigan by November 25, following mounting pressure from state regulators. 

The agreement marks another step in Michigan's efforts to restrict sports-related prediction markets that operate without Michigan gambling licenses.

The Michigan Gaming Control Board (MGCB) announced the agreement on October 28, 2026. Under its terms, Polymarket must stop offering new sports event contracts to Michigan customers and close all remaining positions by the deadline.

Importantly, the agreement targets sports-related contracts, not Polymarket's entire prediction market offering. Political, election, and macroeconomic prediction markets remain outside the agreement's stated scope, although other applicable restrictions may still apply.

The move adds to a growing regulatory challenge for prediction market platforms across the United States. Michigan officials maintain that companies offering sports-related contracts must follow the same licensing requirements as traditional sports betting operators.

Polymarket Agrees to Close Remaining Positions

The agreement involves QCX LLC, which operates as Polymarket US. Customers can voluntarily close their existing positions before November 25, but the company must close any positions that remain open by the end of that day, Eastern time.

The U.S. District Court for the Western District of Michigan approved the stipulation. In return for Polymarket's compliance, Michigan agreed not to pursue enforcement action under the agreement's terms.

MGCB Executive Director Henry Williams described the development as evidence that the state's regulatory approach is working.

"Polymarket joining Kalshi, Robinhood, and Coinbase in stepping back from these unlicensed sports contracts shows that Michigan's approach is working," Williams said. 

"We expect all operators to respect Michigan's regulatory framework. If you want to offer sports wagering to Michigan residents, you need a Michigan license."

His comments underscore the distinction Michigan draws between federally regulated prediction markets and state-licensed sports wagering. The state argues that sports-related contracts fall under its gambling laws, regardless of how platforms classify their products.

Michigan's Legal Challenge Against Prediction Markets

Polymarket's agreement follows months of legal disputes with Michigan officials. The company sued state regulators in March 2026, seeking to block enforcement against its sports event contracts.

The federal court rejected Polymarket's request for a temporary restraining order in March. In June, it also denied the company's motion for a preliminary injunction, finding that the sports event contracts at issue did not qualify as financial "swaps" under the relevant federal statutory definition.

That distinction weakened Polymarket's argument that federal commodities law shielded its sports contracts from Michigan's gambling regulations. However, the ruling did not resolve every question surrounding federal and state authority over prediction markets.

Polymarket subsequently appealed, leaving the broader dispute unresolved.

Michigan Attorney General Dana Nessel also warned the company in September that the state would pursue legal action unless it stopped offering sports-related contracts to residents.

Nessel framed the latest agreement as part of a wider effort to hold prediction market operators accountable under state law.

"One by one, from Kalshi to Robinhood and Coinbase, and this latest agreement with Polymarket, we're holding the national sports betting industry accountable to Michigan law," Nessel said. 

"Alongside the MGCB, we're protecting Michigan residents by ensuring gaming in our state occurs in licensed and regulated ways, and under the protections and safeguards afforded by the law."

The agreement therefore gives Michigan another regulatory victory, although it does not settle the underlying legal questions surrounding prediction markets.

Implications for Michigan Gambling and US Online Sportsbooks

Michigan has taken action against several prediction market operators, including Kalshi, Robinhood Derivatives, and Coinbase Financial Markets. Polymarket's agreement reinforces the state's position that sports event contracts cannot bypass its gambling regulations simply by operating under a different regulatory framework.

Coinbase Financial Markets had already halted its sports event contracts in Michigan earlier in October, making Polymarket the latest platform to step back amid the state's regulatory crackdown.

The dispute centers on whether federal commodities oversight preempts state gambling laws. Prediction market operators argue that their contracts fall under federal jurisdiction, while Michigan officials contend that sports-related contracts constitute wagering requiring state authorization.

This distinction matters for the wider betting industry, including licensed US online sportsbooks. Michigan's approach seeks to preserve a regulated market where operators must obtain approval and comply with state consumer protections.

However, prediction market operators continue to challenge state restrictions through the courts. Polymarket's pending appeal could therefore influence how regulators and federal courts address similar disputes elsewhere.

For now, the agreement establishes a clear deadline for Polymarket's Michigan sports contracts. The company must stop offering new positions and close remaining ones by November 25. 

Its political and macroeconomic markets remain outside the agreement's scope, while the broader fight over prediction market regulation continues.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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