Michigan Tightens Kalshi Ban as Court Battle Escalates

TLDR

• A Michigan court ordered Kalshi to keep sports-related event contracts blocked for residents while the state lawsuit continues.
• The preliminary injunction requires Kalshi to use a Michigan-licensed third-party geolocation provider to enforce the restrictions.
• Kalshi could face a $500,000 daily fine if the court finds that it failed to meet the required geofencing rules.
• Michigan argues that Kalshi’s sports contracts operate like unlicensed sports betting, while Kalshi says federal commodities law governs its markets.
• The Michigan dispute adds to a growing legal split across U.S. states over whether prediction market sports contracts fall under state gambling laws.

A Michigan court ordered Kalshi to keep sports event contracts blocked for state residents while a lawsuit continues. Ingham County Circuit Court Judge Rosemarie E. Aquilina signed the preliminary injunction on Sept. 1. The order replaces a June temporary restraining order and will remain active until the court reaches a decision.

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