Michigan Court Blocks Kalshi Sports Contracts

Michigan authorities have secured a preliminary injunction blocking the prediction market platform Kalshi from offering sports-related event contracts to state residents. The order, issued by Ingham County Circuit Court Judge Rosemarie Aquilina, mandates that Kalshi implement geofencing technology to prevent access by individuals within Michigan's borders. Violations of the injunction carry a penalty of $500,000 per day. The injunction stems from a lawsuit filed in March by Michigan Attorney General Dana Nessel, who alleges that Kalshi's operations violate the state's Lawful Sports Betting Act. The state contends that Kalshi allows residents to engage in sports betting disguised as trading event contracts, operating without the necessary license from the Michigan Gaming Control Board. Judge Aquilina stated that the platform's activities pose an immediate and irreparable harm, masquerading as investment opportunities while sidestepping state consumer protections, including age restrictions, as Kalshi permits users aged 18 and older while Michigan law requires bettors to be 21.