TLDR A Michigan state court issued a preliminary injunction requiring Kalshi to keep blocking state residents from sports-related event contracts. The order came from Ingham County Circuit Court Judge Rosemarie E. Aquilina on Tuesday. Kalshi must use a state-licensed geolocation provider to meet geofencing rules. Violations carry a fine of $500,000 per day. Kalshi faces similar legal action in more than a dozen states, including a new lawsuit from Connecticut.
A Michigan state court has ordered Kalshi to keep blocking state residents from accessing sports-related event contracts. The ruling came from Ingham County Circuit Court Judge Rosemarie E. Aquilina.
The order was signed on Tuesday. Michigan Attorney General Dana Nessel announced it in a statement released Wednesday.
The injunction will stay in place until a final ruling is reached in the case. It requires Kalshi to keep Michigan users off its sports contracts while the case continues.
What The Injunction Requires
Kalshi must use a third-party geolocation provider licensed by Michigan’s gaming regulator. This provider must confirm the platform meets the state’s geofencing rules.
The rules are meant to stop Michigan residents from placing sports-related trades through Kalshi. Any violation of the order comes with a steep cost.
The fine is set at $500,000 per day. That penalty applies for each day Kalshi fails to comply with the geofencing requirement.
This injunction replaces an earlier temporary restraining order from June. That means the restrictions are no longer short-term and will remain active until the court reaches a final decision.
Background On The Michigan Lawsuit
Michigan filed its lawsuit against Kalshi in March. The state argued that Kalshi let residents take part in sports betting while calling it event contract trading.
State officials say this setup lets Kalshi offer sports betting without the licenses Michigan law requires. Kalshi