A Michigan court has granted Attorney General Dana Nessel a preliminary injunction against Kalshi, ordering the prediction-market operator to stop any activity tied to sports wagering in the state while the case continues. The order, entered in Lansing on Sept. 1 after an Aug. 17 hearing, also requires Kalshi to use a third-party geolocation provider licensed by the Michigan Gaming Control Board and capable of meeting the board’s geofencing standards.
The ruling gives the company a steep financial warning. If Kalshi fails to comply with the geolocation requirements, the court said it faces a fine of $500,000 for each day of noncompliance. The injunction bars Kalshi from offering, listing, matching, executing, clearing, settling or otherwise facilitating internet sports betting contracts to anyone located in Michigan or through any platform or channel accessible in the state. It also blocks the company from taking deposits, stakes, fees or other consideration from people in Michigan, from allowing account creation, verification, funding or maintenance for access to those contracts, and from advertising, promoting or soliciting participation through websites, apps, email, push notifications, social media, influencers, affiliates or paid placements.
As reported in June, a Michigan judge had already issued a temporary restraining order against Kalshi, and the new ruling keeps the ban in place until a final order is entered. The court said immediate and irreparable harm justified the injunction, pointing to Michigan’s 21-plus wagering rule, Kalshi’s ability to take wagers from 18-year-olds, and the state’s patron-protection framework. It also said Kalshi’s conduct could undercut funding for schools, compulsive-gambling prevention, economic development and first responders, while depriving tribal governments of gaming revenue.
Michigan sued Kalshi in March under the Lawful Sports Betting Act, saying the company was running an unlicensed sports-betting operation behind the label of event contracts. Kalshi has argued that Michigan lacks regulatory authority over it; in a response quoted by Michigan Advance, Elisabeth Diana, the company’s head of communications, said after the earlier restraining order that it disagreed with the state’s decision and would fight it in court. The injunction also requires Kalshi, within three business days, to send the order to every futures commission merchant that offers its sports contracts and provide contact details for Michigan’s lawyers.
