Ingham County Circuit Court Judge Rosemarie Aquilina signed a preliminary injunction on September 1 barring Kalshi from offering, listing, executing, or settling sports event contracts for Michigan residents. The order extends a temporary restraining order the same court issued in June and requires Kalshi to block new account creation and funding, halt deposits and fees tied to sports events, and cease all advertising directed at Michigan addresses, including through third parties.
The case originated with a lawsuit Michigan Attorney General Dana Nessel’s office filed in March, alleging Kalshi’s sports event contracts violate the state’s Lawful Sports Betting Act. Michigan Attorney General Dana Nessel’s office has pursued the matter without issuing a prior cease-and-desist notice, according to case background.
Judge Aquilina’s order cited seven grounds for the injunction: Kalshi’s 18-year minimum age requirement, versus the 21-year minimum for state-licensed operators; the platform’s alleged exploitation of mental health vulnerabilities absent state-mandated consumer protections; circumvention of Michigan’s patron-protection framework; an unfair competitive advantage stemming from Kalshi’s federal regulatory designation; reduced state funding for schools, gambling prevention programs, economic development, and first responders; threatened gaming tax revenue that supports Detroit law enforcement and infrastructure; and harm to tribal governments’ revenue and sovereignty.
Compliance Deadline and Penalties
Kalshi must notify all futures commission merchants of the order by September 4 and implement geolocation services through a provider licensed by the Michigan Gaming Control Board. Noncompliance carries a fine of $500,000 per day.
Elisabeth Diana, Kalshi’s head of communications, said the company disagrees with the ruling and will appeal, citing arguments around federal jurisdiction over its event contracts. Nessel said in a statement: “My office will continue to defend Michiganders and enforce our gaming laws.”
Part of a Broader State-by-State Pattern
Michigan joins Connecticut, Massachusetts, Nevada, New York, Utah, and Washington in taking successful enforcement action against Kalshi’s sports-related contracts. New Jersey has separately petitioned the US Supreme Court for a definitive ruling on whether prediction market sports contracts fall under state gaming law or federal commodities jurisdiction, a question that could ultimately resolve the patchwork of state-level rulings now accumulating against the platform.