Michigan Court Orders Kalshi to Halt Sports Betting

A Michigan judge has temporarily blocked Kalshi from offering sports contracts in the state, siding with Attorney General Dana Nessel’s request for immediate action. 

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Ingham Circuit Court Judge Rosemarie E. Aquilina issued the restraining order, saying Michigan and its citizens were being harmed by Kalshi’s operation, which she described as “masquerading as an investment opportunity.” 

The ruling pointed out that licensed operators contribute tax revenue while Kalshi, by avoiding state gaming laws, gains “a massive and unfair advantage.” The judge also noted that the company’s approach disregards the rights of tribal gaming operators in Michigan. 

Attorney General Nessel stressed the importance of fairness in the market, stating: “We remain committed to enforcing a level playing field for all gambling platforms in Michigan and ensuring that companies cannot evade accountability or exploit consumers under the guise of a prediction market.”

The restraining order was issued just days after a federal district judge rejected Kalshi’s attempt to move the case into federal court, leaving the matter in Michigan’s jurisdiction for now. 

TRO to last 14 days

Judge Rosemarie Aquilina’s order requires Kalshi to immediately stop offering sports betting contracts in Michigan and to block access through licensed geolocation services. 

The company must rely on a provider approved by the Michigan Gaming Control Board to ensure residents cannot reach its sports markets. 

The court left room for Kalshi to use a vendor licensed in another state, but only if that vendor can meet Michigan’s strict geofencing standards. 

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The restraining order also carries financial consequences. Aquilina ruled that Kalshi will face a fine of $120,000 for every day it fails to comply with the geolocation requirement. She explained that the figure was based on a “conservative estimate” of Kalshi’s $600 million daily trading volume, divided to reflect Michigan’s share of trades. The penalty represents 1% of that share, which she considered equal to the fees Kalshi earns for facilitating trades. 

The temporary order will remain in place until July 13. At that point, the court will decide whether to extend the restrictions through a preliminary injunction, which could keep Kalshi barred from sports betting in Michigan for a longer period. 

Kalshi says it will start “implementing restrictions”

Kalshi has vowed to fight the Michigan restraining order, but at the same time says it will begin putting restrictions in place. 

Speaking to Gambling Insider, Head of Communications Elisabeth Diana argued that the company falls under federal oversight alone and won’t be “bullied by interests that care more about protecting their monopolies than their consumers.”

The company is also facing similar battles elsewhere. In Massachusetts, a ban remains stayed while Kalshi pursues an appeal. 

In Nevada, regulators accused the exchange of ignoring court orders by relying on its own geolocation system, which cost less than $200,000 to build and uses IP addresses to track users. 

Officials there said testing was carried out by “family and friends” and asked a judge to impose fines of $120,000 per day until Kalshi’s system meets state standards. 

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