Michigan Attorney General Dana Nessel has secured a preliminary injunction blocking Kalshi from offering sports contracts in the state. The company must maintain geofencing to prevent Michigan residents from accessing its platform, with violations carrying a $500,000 daily fine.
Nessel filed suit against Kalshi in March, claiming the company violated Michigan's Lawful Sports Betting Act by offering sports wagers through event contracts without approval from the Michigan Gaming Control Board. The AG's office argued Kalshi allowed residents to bet on sporting outcomes under the guise of contract trading. Kalshi attempted to move the case to federal court in Michigan's Western District but was sent back to Ingham County Circuit Court on Nessel's motion. A judge had already issued a temporary restraining order against Kalshi in June, which ran through mid-July.
In July, the MGCB withdrew from the National Council on Problem Gambling over the nonprofit's $2 million partnership with Kalshi. MGCB Executive Director Henry Williams said the deal conflicted with the state's efforts against unlicensed betting and criticised Kalshi's positioning of its products as "investments" rather than gambling, which creates uncertainty for users.
Kalshi intends to challenge the ruling. The company said in July it disagreed with the state's position and would defend itself by citing federal jurisdiction.
