Michigan judge bars Kalshi from offering sports bets
A Michigan judge issued a 14-day restraining order blocking Kalshi from offering sports contracts to state residents and set $120,000 daily fines for geolocation noncompliance.
In an Ingham County Circuit Court filing on Monday, Judge Rosemarie Aquilina granted a 14-day temporary restraining order that prevents prediction market Kalshi from offering sports event contracts to Michigan residents. The order expires on July 13 and imposes a $120,000 daily fine if the platform does not meet the court’s geolocation requirements.
The state attorney general alleged Kalshi operated in violation of Michigan gambling laws and argued the platform’s sports offerings fall outside permissible investment products under state statute. The order bars Kalshi from accepting wagers or offering sports contracts to anyone located in Michigan.
Aquilina wrote in the court filing that Michigan residents would suffer irreparable harm if allowed to participate, saying they risk being ‘exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.’
Michigan is the second U.S. state to receive a court-ordered ban on Kalshi’s sports event contracts, after a temporary ban in Nevada earlier in March. On June 17, Kentucky sued five prediction market platforms, including Kalshi, alleging they operate unlicensed sports betting services. More than a dozen other states have taken legal action against similar operators.
The U.S. Commodity Futures Trading Commission has filed lawsuits asserting federal regulatory authority over event contracts and disputing state oversight. Those federal suits and the state cases form a legal contest over whether event contracts should be treated as commodities, securities, or prohibited wagers under state law.
Trading in prediction-market sports contracts rose during the FIFA World Cup. Data show daily taker volume reached a record $713 million on June 20. Monthly sports volume rose about 40% on Kalshi to roughly $9.5 billion and about 175% on another major platform to $5.3 billion. The World Cup winner market generated more than $3.5 billion in trading on a single platform. A wallet study of 857,000 users found about 60% of World Cup bettors used the blockchain for the first time when they entered prediction markets.
The restraining order will remain in effect for two weeks while the Michigan court reviews the state’s claims.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
