Michigan and Kalshi File Lawsuits Over Sports Predictions

Kalshi’s legal battle over sports prediction markets has now entered the Wolverine State.

Michigan Attorney General Dana Nessel has filed a lawsuit against Kalshi in the state’s 30th Judicial Circuit Court. It alleges that Kalshi is illegally offering sports betting to Michigan residents, and asks the court to grant a permanent injunction to keep the operator out. 

The lawsuit makes Michigan the tenth state to sue Kalshi over its sports prediction markets.

Michigan AG Looks to Protect Residents

In her lawsuit, Nessel put a large emphasis on protecting Ohio residents from prediction markets. She believes operators like Kalshi are misleading residents into believing the platform isn’t gambling, only to find out the truth after experiencing losses. 

The lawsuit essentially comes down to Kalshi knowingly offering gambling without any licensing from the Michigan Gaming Commission Board (MBCB). 

Kalshi is facilitating gambling in Michigan without all the required responsible gambling features mandated for licensed internet sports betting, and without any oversight by the MGCB as to whether its measures are effective, which is exposing residents of Michigan to gambling addiction with few safeguards.

Kalshi Will Take Quick Action

When it comes to fighting lawsuits from states, this isn’t Kalshi’s first rodeo. They are locked in legal battles with ten, and many more from tribal gaming groups. 

Based on Kalshi’s past actions, expect them to immediately file a lawsuit of their own, asking the court to keep the platform active as the lawsuit plays out. 

Another move will be to push for the case to be removed to the federal court system. The operator has had better luck there, finding judges who are friendlier to the prediction industry. While it would give Kalshi an advantage, winning those requests has been difficult.

Polymarket Files Lawsuit Against Michigan

One of Kalshi’s top rivals isn’t waiting for Michigan to take action against it.

Polymarket filed a pre-emptive lawsuit against the state shortly after the Kalshi lawsuit was filed. By taking action first, the operator can force Michigan to fight in the friendlier federal court system. 

BREAKING: Michigan Attorney General @DanaNessel has filed a civil enforcement action against Kalshi in Ingham County Circuit Court. Michigan becomes the 10th state to be engaged in litigation with Kalshi, but only the third to sue as a plaintiff in state court. pic.twitter.com/An2ofDwMYo

— Daniel Wallach (@WALLACHLEGAL) March 3, 2026

The federal argument argues that Michigan is using state courts to evade federal jurisdiction. Polymarket cites the lawsuit recently filed against Kalshi as justification for the preemptive action.