Michigan Blocks Prediction Market Kalshi Over Sports Betting, Backed By $500,000 Daily Fines

A Michigan court has granted a preliminary injunction against prediction market operator KalshiEx, LLC, stopping the company from offering sports wagers to users inside the state.

Under the terms of the injunction, Kalshi must enforce geofencing technology to prevent anyone located within Michigan’s borders from accessing its sports betting contracts. The court set a fine of $500,000 per day for any violations of the order.

Michigan Attorney General Dana Nessel initiated the legal action in March, filing a lawsuit that accused the derivatives exchange of breaching the state’s Lawful Sports Betting Act (LSBA).

The state contends that Kalshi operates an unlicensed sports gambling service disguised as an event-contract trading platform. According to the lawsuit, the platform lets users bet on sports outcomes through standard financial transaction channels without obtaining the required license from the Michigan Gaming Control Board.

“Kalshi long attempted to pass itself off as a legitimate gaming operation in our state, and I am relieved that this order further protects Michigan residents from its predatory, unlicensed practices,” Attorney General Nessel said. “My office will continue to defend Michiganders and enforce our gaming laws, which ensure gambling revenue is regulated and distributed back into our communities.”

The legal battle moved across jurisdictions before returning to state court. Following the initial state-level filing, Kalshi sought to transfer the proceedings to the U.S. District Court for the Western District of Michigan. Nessel opposed the transfer with a motion to remand, which was granted, returning the lawsuit to the Ingham County Circuit Court.

The preliminary injunction follows an earlier temporary restraining order granted to the state in June, which barred Kalshi from promoting or running internet sports betting operations in Michigan while the litigation moved forward.