Kalshi Must Stop Sports Wagers In Michigan Or Face $500,000 Daily Fines

Michigan Attorney General Dana Nessel said a preliminary injunction requires Kalshi to keep Michigan residents and anyone physically inside the state from accessing its sports-event contracts. The order makes geofencing mandatory and sets a $500,000 daily penalty for violations, putting court-enforced access restrictions at the center of Michigan’s fight against Kalshi’s sports markets.

The injunction stems from a March lawsuit alleging that Kalshi violates Michigan’s Lawful Sports Betting Act by offering sports wagers as event contracts without approval from the Michigan Gaming Control Board. The state argues that Kalshi’s federal derivatives structure does not exempt its sports products from Michigan gambling law, a position now supported by preliminary relief while the case continues.

The dispute has already moved between state and federal court. Kalshi removed the case to federal court, but Michigan secured a remand to Ingham County Circuit Court after obtaining a temporary restraining order in June. With the preliminary injunction now in place, compliance with geofencing becomes the immediate operational test as the underlying lawsuit remains unresolved.

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