A Michigan judge has temporarily blocked Kalshi from offering online sports wagers in the state, giving Attorney General Dana Nessel an early win in her fight against the prediction market platform. The order underscores a growing clash between state gambling rules and new financial products that let people bet on real‑world events. As the case continues, Michigan residents cannot place sports event contracts on Kalshi.
On Monday, Ingham County Circuit Court Judge Rosemarie Aquilina issued a temporary restraining order against Kalshi at Nessel’s request.
In her ruling, she said, “Michigan and its most vulnerable citizens are suffering and will continue to suffer immediate and irreparable harm absent relief from being exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.”
She therefore barred the New York‑based company from offering sports‑events contracts to anyone in Michigan.
Under the order, Kalshi must use a third‑party geolocation service licensed by the Michigan Gaming Control Board to block access from inside the state. Aquilina also said she would fine Kalshi $120,000 for each day it fails to meet those geolocation requirements. Because the ruling is temporary, it will stand while the broader legal battle plays out.
Attorney General’s Case Against Kalshi
Michigan first sued Kalshi in March, claiming the platform violated the state’s Lawful Sports Betting Act. The complaint argues that Kalshi’s “event contracts” on sports outcomes amount to unlicensed online sports betting and operate as a public nuisance. Nessel’s office says the company induces residents to “reasonably believe that its internet sports betting operation is legal in the State of Michigan when in fact such conduct is illegal.”
Under Michigan law, internet sports betting can only be offered by licensed commercial casinos or federally recognized tribes. However, regulators say Kalshi does not hold the required sports betting license from the Michigan Gaming Control Board. Consequently, the lawsuit seeks a permanent injunction barring Kalshi from offering any sports-event contracts to Michigan residents.
Kalshi, regulated at the federal level by the Commodity Futures Trading Commission, maintains that its markets are financial derivatives, not gambling. In a statement, company spokesperson Elisabeth Diana said Kalshi plans to fight the Michigan decision in court. Therefore, the firm argues that states cannot impose extra licensing rules on CFTC‑approved prediction markets.
This Michigan order makes the state at least the second to use a court‑ordered ban against Kalshi’s event contracts, following Nevada.
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