TLDR A Michigan judge issued a temporary restraining order against Kalshi on Monday. The order stops Kalshi from offering sports event contracts in the state. Kalshi faces a $120,000 daily fine if it fails to meet geolocation rules. Michigan is the third state to block Kalshi’s sports markets, after Nevada and Massachusetts. Kalshi says it will fight the order but will start adding restrictions.
A Michigan judge ordered Kalshi to stop offering sports event contracts in the state on Monday. The order came from Ingham Circuit Court Judge Rosemarie E. Aquilina.
Michigan Attorney General Dana Nessel requested the restraining order. She argued that Kalshi’s sports contracts amount to sports betting disguised as investing.
Nessel said the state and its licensed betting operators lose money because of Kalshi’s activity. Licensed operators pay taxes on their revenue, while Kalshi does not follow the same rules.
Judge Aquilina agreed with the state’s argument. She wrote that Kalshi has an unfair advantage over companies that follow Michigan’s gaming laws.
The judge also said Kalshi ignores the authority of the state’s tribal gaming operators. Those groups run licensed betting operations under separate agreements with Michigan.
Kalshi began offering sports contracts in January 2025. This followed changes at the Commodity Futures Trading Commission during the Trump Administration.
The commission approved Kalshi to offer these contracts under federal rules. Kalshi argues this approval means states cannot block its markets.
Third-Party Solution Required
The restraining order requires Kalshi to block sports trading for Michigan users. It must also use a geolocation vendor licensed by the Michigan Gaming Control Board.
The court said it may accept a vendor licensed in another state. That vendor would still need to meet Michigan’s location-tracking standards.
Judge Aquilina set the fine at $120,000 per day if Kalshi cannot meet the