Judge Orders Kalshi to Cease Operations in Michigan
David Genge Published 30/06/2026
A Michigan judge has issued a temporary restraining order barring Kalshi from offering sports-event contract prediction markets in the state. Ingham County Circuit Court Judge Rosemarie Aquilina issued a 14-day temporary restraining order barring Kalshi from offering sports-event contracts to Michigan residents, finding the platform was violating state gambling laws. Michigan Attorney General Dana Nessel sought the halt, noting that Kalshi was not licensed to offer sports betting in Michigan.
The judge agreed with the state's case. Kalshi will be required to geofence its product in Michigan. As part of the judge's ruling, Kalshi would be fined for violations of this order.
Kalshi can't offer sports-event contracts in Michigan for at least two weeks
The temporary restraining order also prohibits Kalshi from advertising its product anywhere in Michigan while the lawsuit continues through the court system.
This ruling is a big win for states in the ongoing legal battle to determine whether state regulators can also require a federally regulated entity to obey their laws to operate in the state. The debate over whether sports-event contracts are, in fact, sports betting and thus should be regulated as such, is being fought on several fronts across the USA.
While the two-week window is a short one, the ruling does set a legal precedent that could prove valuable to states fighting in court against prediction market sites like Kalshi and Polymarket, and the Commodities Futures Trading Commission (CFTC), the federal regulatory body overseeing these sites.
“Our gambling laws exist to protect Michiganders from unlicensed, predatory operations, and failing to comply with them carries serious legal consequences,” Michigan Attorney General Nessel said in a statement. “I am proud of the attorneys in my office who not only kept this case in state court but also secured an order protecting residents as this litigation moves forward.
"We remain committed to enforcing a level playing field for all gambling platforms in Michigan and ensuring that companies cannot evade accountability or exploit consumers under the guise of a prediction market.”
Kalshi and Michigan have been in court battles since March
Originally, Nessel filed a lawsuit against Kalshi in March. His argument was alleging the derivatives exchange and prediction market company violated Michigan’s Lawful Sports Betting Act (LSBA). The Attorney General asserted in the lawsuit that Kalshi offers an illegal online operation. It enables Michigan residents to engage in sports betting under the guise of trading event contracts.
Kalshi's platform allows users to place wagers on the likelihood of sports-related outcomes. They conduct transactions through widely used financial systems and participate in what the lawsuit alleges constitutes unlicensed gambling activity. The Attorney General contends that Kalshi is conducting illegal sports betting in Michigan. The site doesn't have the licensing approval of the Michigan Gaming Control Board.
That is in violation of the LSBA.
After the filing of the lawsuit in state court, Kalshi attempted to move the case to the United States District Court for the Western District of Michigan. Nessel then filed the Motion to Remand, which was granted, sending the lawsuit back to the Ingham County Circuit Court.
Three states are fighting prediction market sites on dual court fronts
In this battle with Kalshi, Michigan becomes the third state to successfully get the legal fight to remain on the state court level.
CFTC-registered platforms are also facing simultaneous state gambling enforcement and federal preemption litigation in both Kentucky and New Mexico.