Coinbase loses Michigan bid over sports prediction markets

Coinbase Financial Markets lost its bid for preliminary relief in Michigan on Aug. 6 after U.S. District Judge Shalina Kumar refused to block state officials from enforcing sports betting laws against the company’s event contracts. Summary Michigan judge Shalina Kumar denied Coinbase’s request to block state enforcement against sports event contracts. Coinbase failed to show sports event contracts likely qualify as swaps under federal commodities law. The ruling leaves Michigan’s sports betting authority intact while Coinbase continues challenging state jurisdiction nationwide. Federal courts remain divided over whether CFTC-regulated sports contracts preempt state gambling and betting laws. CFTC rulemaking and parallel state lawsuits could shape the next phase of prediction market regulation. The order leaves Coinbase without the injunction it sought as its challenge continues. Coinbase sued Michigan Attorney General Dana Nessel, arguing that event contracts offered through federally regulated prediction markets fall under the Commodity Exchange Act and the Commodity Futures Trading Commission’s exclusive jurisdiction. Coinbase wants Michigan customers to access contracts supplied...