A Michigan judge ordered Kalshi to stop offering and advertising products that would amount to internet sports betting to people located in the state for 14 days.
Ingham County Circuit Court Judge Rosemarie Aquilina signed the temporary restraining order at the request of Michigan Attorney General Dana Nessel’s office.
According to CBS News Detroit, Aquilina wrote that Kalshi violated Michigan’s gaming industry requirements by allowing people aged 18 to place wagers rather than Michigan’s requirement that bettors be 21 or older.
The order required Kalshi to use a third-party geolocation services provider licensed by the Michigan Gaming Control Board that could ensure compliance with the Board’s technical geofencing specifications.
If Kalshi wanted an alternative, the order also said it may propose a third-party geolocation provider licensed by a gaming regulator of another state, and the court would determine whether that provider could comply with Michigan’s geofencing specifications.
The restraining order set a fine of $120,000 per day for noncompliance with the geolocation requirements, and it barred Kalshi from facilitating or accepting money for internet sports betting contracts and from advertising such wagers to people located in Michigan.
The state court action followed a decision to send the case back to state court. Michigan’s attorney general said a U.S. district court remanded the lawsuit after Kalshi sought to move the case to federal court, and CBS News Detroit reported that remand occurred on June 25.
Kalshi said it would fight the ruling, with Elisabeth Diana telling the Detroit News that Kalshi was subject to exclusive federal jurisdiction.
The injunction framework also gives Kalshi a specific next step on geolocation. The company can propose another licensed geolocation provider for the court to review against Michigan’s geofencing requirements.
