Michigan officials have alleged that Kalshi violated a court order prohibiting the company from advertising to residents of the state. Already facing legal challenges, Kalshi had previously agreed to cease offering sports event contracts in Michigan.
According to Michigan's Attorney General Dana Nessel, Kalshi knowingly disregarded a preliminary injunction by continuing to market their services in Michigan. In a recent filing to the Ingham County Circuit Court, Nessel claimed that Kalshi "elected to thumb its nose at the Court" by engaging in advertising activities despite the prohibition. Judge Rosemarie Aquilina has scheduled a hearing for November 24 to consider Nessel’s request to hold Kalshi in contempt.
Nessel's filing presents evidence that three individuals received advertisements from Kalshi through email, social media, and YouTube after the injunction took effect on September 1. Two individuals reported seeing ads boasting about "markets you don’t want to miss," and the third encountered a targeted advertisement labeled "Kalshi: Trade Football and More,” which invited them to download the app for NFL betting.
Nessel also pointed to a statement made by Kalshi in July in which the company claimed to have stopped targeting ads to Michigan users. This was merely weeks after Michigan had obtained a temporary restraining order to halt Kalshi's promotional activities in the state.
The filing argues, "Despite the clear articulation of prohibited conduct regarding advertisements, Kalshi repeatedly and expressly violated the terms of this Court's preliminary injunction by sending targeted email and social media advertisements to Michigan residents that should be blocked, via geofencing, from receiving such advertisements."
Kalshi's actions are described as a blatant defiance of the court's order issued on September 1, 2026, which specifically prohibits the company from engaging in any activities related to sports wagering in Michigan. This includes advertising, promoting, marketing, or soliciting participation in any internet sports betting contracts directed at Michigan residents.
The strict enforcement of gaming regulations in Michigan stems from the state's comprehensive gaming legalization efforts initiated in December 2019, which included online sports betting, iGaming, and online poker. Michigan regulators have actively pursued actions against various fantasy sports, sweepstakes, and prediction market operators they believe to be non-compliant with state statutes.
Kalshi's legal challenges continue even as other prediction market operators have opted to halt their operations to avoid conflict, with Coinbase agreeing to stop offering sports event contracts in Michigan as of October 10 and Robinhood reaching a similar agreement with regulators in September.
In addition to the contempt ruling, Nessel's office is seeking fines against Kalshi along with reimbursement for any costs incurred by the Department of Attorney General related to enforcement of the preliminary injunction, including attorney fees.
