Michigan judge orders Kalshi to halt sports wagering across state

A Michigan judge has issued a temporary injunction, temporarily suspending Kalshi's sports contracts within the state, providing the Attorney General Dana Nessel with a preliminary relief as her lawsuit against the prediction-market company continues. Ingham County Circuit Court Judge Rosemarie E. Aquilina issued the order on September 1, prohibiting Kalshi and affiliated entities from engaging in sports wagering activities in Michigan until further notice.

If Kalshi breaches the order, a $500,000 daily fine will apply. This decision came after Aquilina determined that Michigan met the criteria for preliminary relief, stating that Michigan citizens are currently enduring and will continue to suffer immediate and irreparable harm from Kalshi's sports betting operations masquerading as investment opportunities.

Attorney General Nessel praised the ruling, expressing relief that Michigan residents are protected from Kalshi's predatory, unlicensed practices and vowed to continue defending Michigan residents and enforcing gaming laws. Kalshi faces the ban on sports betting in Michigan and substantial noncompliance fines. The injunction restricts Kalshi and related parties from sports wagering activities such as parlays, moneylines, over-unders, pools, proposition bets, and in-game wagers.

Moreover, the company cannot collect related deposits or fees or promote those products to Michigan residents. The court also expressed concerns about age rules, as Michigan's legalized gaming industry requires individuals to be 21 years old or older to place wagers, while Kalshi permits wagers from as young as 18. The injunction mandates Kalshi to utilize a third-party geolocation provider licensed by Michigan regulators and capable of adhering to state geofencing standards.

Noncompliance will result in a daily fine of $500,000, and the company must distribute the injunction to Futures Commission Merchants offering its sports event contracts within three business days.