Michigan Judge Blocks Kalshi Sports Prediction Markets

In Michigan, sports prediction contracts are barred after Michigan Attorney General Dana Nessel secured a preliminary injunction against Kalshi. 

Ingham County Circuit Court Judge Rosemarie Aquilina signed the order on Tuesday. This follows a temporary restraining order granted in June against Kalshi that continued into August. 

If Kalshi doesn't comply, it'll face a $500,000-per-day fine. The order also requires Kalshi to use geolocation technology to block prospective traders in Michigan. This all stems from Nessel filing a lawsuit in March saying Kalshi sports event contracts violate the Lawful Sports Betting Act.

Kalshi Barred From Offering Sports Contracts in Michigan

“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,” Nessel said in a statement. “My office will continue to defend Michiganders and enforce our gaming laws, which ensure gambling revenue is regulated and distributed back into our communities.”

As a result of this preliminary injunction, Kalshi is officially barred from listing, executing, offering, or settling all sports-related contracts with anyone in Michigan. This includes anything “functionally similar” to sports wagering, such as in-game betting, props, moneyline bets, and parlays. 

Kalshi also cannot advertise to anyone in Michigan. 

As for geolocation, Kalshi must use a third party licensed by the Michigan Gaming Control Board.

Judge Cites Consumer Protections and Kalshi's Minimum Age

Aquilina echoed Nessel's concerns, saying the following:

“Michigan and its most vulnerable citizens are suffering and will continue to suffer immediate and irreparable harm absent relief from being exploited by Kalshi’s sports betting operation masquerading as an investment opportunity,” she wrote to begin the order.

Part of the ruling concerned Kalshi's minimum age requirement of 18, as opposed to 21, the minimum for online sports betting. Aquilina said Kalshi had an “unfair advantage” over licensed sports betting operators. 

There were other reasons, including exploiting mental health issues, evading patron protections, impact on Detroit and tribal governments, and lost state funding. 

Michigan now joins Connecticut, Massachusetts, Nevada, New York, Utah, and Washington as states that have successfully sued Kalshi. New Jersey is also petitioning the Supreme Court to make a final decision.