A Michigan court has mandated that Kalshi, a prediction market operator, cease its sports betting operations within the state, imposing potential penalties of up to $500,000 daily for non-compliance. The ruling was delivered by Ingham County Circuit Court Judge Rosemarie E. Aquilina, following a lawsuit from Michigan Attorney General Dana Nessel, who contended that Kalshi was facilitating illegal sports betting markets.
This injunction extends a temporary restraining order that was initially issued in June and will remain in effect until a final decision is rendered. The court underscored that the continuation of Kalshi’s sports wagering contracts poses a risk to Michigan residents, particularly those vulnerable to gambling-related issues. Notably, while the state requires participants to be at least 21 years old, Kalshi allows individuals as young as 18 to engage in its offerings.
The court characterized Kalshi’s operations as exploitative of individuals facing serious mental health challenges, asserting that the company does not adhere to the protective measures established by Michigan’s regulatory framework. The injunction specifically forbids Kalshi from providing or facilitating any sports contracts for Michigan residents. This includes a prohibition on accepting deposits, managing accounts, or advertising through various channels such as websites, applications, emails, and social media.
In compliance with the order, Kalshi must enlist a licensed third-party geolocation service to block access to restricted markets for residents in Michigan. Should the court determine that Kalshi does not meet the mandated geofencing standards, the company faces the possibility of a $500,000 penalty for each day of non-compliance.
