Michigan Ingham County Circuit Court Judge Rosemarie Aquilina has signed an injunction barring Kalshi from accepting sports bets from Michigan residents. If Kalshi fails to implement geofencing to block resident access in the state, the platform faces fines of $500,000 per day.
“A sports betting operation masquerading as an investment opportunity,” Judge Aquilina stated in her ruling. The injunction prohibits the platform from accepting deposits or allowing new account creation by Michigan residents. Promotional bans are also strictly enforced; Kalshi cannot advertise via apps, push notifications, influencers, or affiliates targeting users in the jurisdiction. Exchange products featuring sports betting characteristics - including parlays, moneylines, in-game, and proposition bets - are subject to similar bans.
The terms of the injunction remain binding until a final judgment in the case is issued by the court. Kalshi was given three business days to issue cease-and-desist orders to any futures commission merchants currently offering its sports contracts. For technical oversight, the platform is required to use a third-party geolocation service provider officially licensed by the Michigan Gaming Control Board.
Why Is Michigan Suing Kalshi?
The initial lawsuit was filed in March 2026 by Michigan Attorney General Dana Nessel under Michigan’s Lawful Sports Betting Act. Authorities allege that Kalshi’s operations bypassed mandatory state protections and disregarded local tribal sovereignty.
User age limits became a sharp point of contention. Kalshi opened its services to 18-year-old users, whereas Michigan gambling regulations mandate a minimum age requirement of 21. The judge noted that the platform’s activities divert mandatory funding streams that should flow into state coffers for schools, compulsive gambling prevention programs, and first responder budgets. Kalshi previously moved the proceedings to federal court, but the maneuver failed and the case was remanded back to Ingham County court jurisdiction. To fight the legal challenge, Kalshi’s defense team has brought on Neal Katyal, former Acting US Solicitor General.
Cross-State Disputes
The Michigan case adds to a growing list of legal pressures hitting Kalshi this year. Last August, a Washington judge issued an order forcing Kalshi to halt most of its prediction markets in that jurisdiction. The Washington court ruling came just days after the Commodity Futures Trading Commission (CFTC) exercised emergency authority to maintain the platform’s ongoing operations.
The clash between prediction market platforms and local authorities continues to drag more parties into court. The CFTC has filed lawsuits against nine states over similar jurisdictional disputes, starting with Illinois, Arizona, Connecticut, Wisconsin, and subsequently Minnesota. The series of legal disputes drew a reaction from President Trump, who openly called state officials opposing prediction markets “SCUM.”
Reported via Decrypt.
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