TLDR A Michigan court issued a preliminary injunction ordering Kalshi to stop offering sports betting markets in the state. Judge Rosemarie E. Aquilina ruled the platform’s operations pose immediate harm to youth and vulnerable residents. Kalshi allowed users as young as 18 to trade, below Michigan’s legal gambling age of 21. The order requires Kalshi to use a licensed geolocation provider to block Michigan users. Kalshi faces a fine of $500,000 per day if it fails to comply with the geofencing rules.
A Michigan court has ordered Kalshi to stop offering sports betting markets to residents of the state.
The preliminary injunction came from Judge Rosemarie E. Aquilina of the Ingham County Circuit Court. It blocks Kalshi from offering or facilitating sports wagers to anyone located in Michigan.
The ruling follows a lawsuit filed by Michigan Attorney General Dana Nessel. She accused Kalshi of running an unlicensed sports betting business disguised as event contract trading.
Nessel said in a press release that Kalshi tried to pass itself off as a legitimate gaming operation. She called the company’s practices predatory and unlicensed.
Background on the Case
The injunction is the latest step in a legal fight that started in March. Nessel first sued Kalshi for alleged violations of Michigan’s Lawful Sports Betting Act.
In June, Nessel secured a temporary restraining order against Kalshi. That order briefly stopped the company from advertising or running its sports betting operation in Michigan.
The new preliminary injunction extends that earlier order. It will stay in place until the court reaches a final judgment in the case.
Why the Judge Ruled Against Kalshi
Judge Aquilina wrote that Michigan residents, including some of the state’s most vulnerable people, faced ongoing harm from Kalshi’s platform. She said the harm would continue without the injunction.
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