Michigan court issues 14 day ban on Kalshi sports contracts

A Michigan court has temporarily barred the prediction market platform Kalshi from offering sports event contracts to state residents, escalating a nationwide legal clash over whether such products are federally regulated derivatives or unlicensed gambling. Ingham County Circuit Court Judge Rosemarie Aquilina issued a 14-day temporary restraining order on Monday, June 29, 2026, which is set to expire on July 13.

The order requires Kalshi to stop offering the contracts to Michigan residents and imposes a potential fine of $120,000 for each day the company fails to comply with geolocation requirements to block state users. In the filing, Judge Aquilina wrote that Michigan residents would suffer irreparable harm from being exploited by what she described as a sports betting operation masquerading as an investment opportunity.

The ruling follows a lawsuit filed by Michigan Attorney General Dana Nessel in March, which argued that Kalshi's sports event contracts violate the state's Lawful Sports Betting Act. Earlier in June, a federal judge remanded the case back to Michigan state court after rejecting Kalshi's attempt to move the dispute to the federal level. Attorney General Nessel...