Michigan judge bans Kalshi prediction markets for sports betting and threatens $500K daily fines.
Regulation & Gov ·
Ingham County Circuit Judge Rosemarie Aquilina issued a preliminary injunction against Kalshi on Tuesday, ordering the prediction market platform to cease offering sports wagers in Michigan and imposing a $500,000 daily fine for each day it fails to implement geofencing. The order, granted following a lawsuit by Michigan Attorney General Dana Nessel filed in March, bars Kalshi from accepting deposits, advertising, and enabling account creation by state residents, with the fine contingent on the company's failure to route geolocation verification through a Michigan Gaming Control Board-licensed provider.
Judge Aquilina characterized Kalshi's operation as a "sports betting operation masquerading as an investment opportunity" and found it circumvents Michigan's regulatory framework, which requires bettors to be at least 21 years old—a requirement Kalshi does not enforce. The injunction also covers products functionally similar to sports betting, such as parlays and proposition bets, and extends to all advertising channels including apps, influencers, and paid placements.
The ruling is the latest setback for Kalshi in state regulatory disputes, following a similar order from a Washington judge in August. The Commodity Futures Trading Commission, however, has defended Kalshi's operations and sued multiple states over their efforts to restrict prediction markets. The preliminary injunction remains in effect pending final judgment in the case.