A Michigan court has mandated that Kalshi, a prediction market operator, cease operations of its sports betting markets within the state, imposing possible fines of $500,000 for each day it remains non-compliant. The preliminary injunction was issued by Ingham County Circuit Court Judge Rosemarie E. Aquilina following a lawsuit from Michigan Attorney General Dana Nessel, who alleged that Kalshi has been providing illegal sports betting options.
This ruling extends a temporary restraining order that was initially put in place in June and will stay active until a final decision is made. The court expressed concern over the impact of Kalshi’s activities on the state and its vulnerable residents. According to the court, while Michigan law requires participants in sports wagering to be at least 21 years old, Kalshi allows individuals as young as 18 to engage in these markets.
The order criticized Kalshi for exploiting serious mental health issues without offering the safeguards intended by Michigan’s regulatory system. It pointed out the company’s bypassing of critical consumer protection measures established in the state.
As part of the injunction, Kalshi is prohibited from conducting any sports contracts with Michigan residents. The company is also barred from facilitating operations such as deposits, account management, or advertising through any channels including websites, apps, or social media. To comply with the court’s ruling, Kalshi must collaborate with a third-party geolocation service licensed by the Michigan Gaming Control Board to ensure that restricted markets are inaccessible to state residents. If the court determines that Kalshi does not adhere to the designated geofencing standards, it could incur fines of $500,000 each day it fails to comply.
