Michigan court orders Kalshi to stop offering sports contracts in the state

A Michigan court has granted a preliminary injunction against Kalshi, ordering the prediction market to block users in the state from accessing its sports-related contracts. For high-risk operators, the interesting bit is not the courtroom theater; it is the message that state regulators may treat these contracts as wagering, with licensing and geofencing obligations to match.

1. Michigan Attorney General Dana Nessel won the injunction, which requires Kalshi to stop offering sports-related contracts in the state and to implement geofencing so Michigan users cannot access the disputed products. The order says violations could carry a $ 500,000 daily fine.
2. Nessel said Kalshi was trying to circumvent Michigan’s gambling regulations and described its sports contracts as an attempt to present itself as a legitimate gaming operation in the state. Kalshi, for its part, says its products are federally regulated financial instruments and therefore outside state authority.
3. Michigan has regulated online sports wagering since 2021, and operators need approval from the Michigan Gaming Control Board. Nessel’s case argues that Kalshi’s sports contracts amount to wagering because customers can stake money on the outcome of sporting events.
4. This injunction follows a temporary restraining order Nessel obtained in June, which already barred Kalshi from operating or marketing its sports contracts in Michigan. Kalshi also tried, unsuccessfully, to move the case to the US District Court for the Western District of Michigan; the lawsuit stayed in Ingham County Circuit Court after Nessel opposed the transfer.
5. The Michigan dispute sits inside a broader clash between prediction market platforms and state regulators over sports contracts. States want operators to follow the licensing, taxation and consumer protection rules that apply to sportsbooks, while prediction platforms keep arguing for federal recognition instead.