Michigan court orders Kalshi to halt sports contracts
A preliminary injunction requires the prediction market to block Michigan users from accessing its sports-related contracts.
US.- Michigan Attorney General Dana Nessel has secured a preliminary injunction against Kalshi, requiring the prediction platform to stop offering sports-related contracts in the state. The order also requires Kalshi to implement geofencing to prevent Michigan users from accessing the disputed contracts, with violations potentially carrying a $ 500,000 daily fine.
Nessel welcomed the ruling and accused Kalshi of attempting to circumvent Michigan’s gambling regulations. “Kalshi long attempted to pass itself off as a legitimate gaming operation in our state, and I am relieved that this order further protects Michigan residents from its predatory, unlicensed practices,” she said.
Michigan has regulated online sports wagering since 2021, requiring operators to obtain approval from the Michigan Gaming Control Board. Nessel’s case argues that Kalshi’s sports contracts constitute wagering because customers can stake money on the outcome of sporting events, while Kalshi maintains that its products are federally regulated financial instruments outside state authority.
The injunction follows a temporary restraining order obtained by Nessel in June that prevented Kalshi from operating or marketing its sports contracts in Michigan. Kalshi unsuccessfully sought to move the case to the US District Court for the Western District of Michigan, but the lawsuit remained in Ingham County Circuit Court after Nessel opposed the transfer.
The Michigan case is part of a broader conflict between prediction market platforms and state regulators over sports contracts. States argue that operators should comply with the licensing, taxation and consumer protection requirements imposed on sportsbooks, while prediction platforms claim federal recognition.
