Michigan court extends block on Kalshi sports prediction markets
A Michigan state court has issued a preliminary injunction requiring Kalshi, a prediction markets platform, to continue blocking residents from accessing sports-related event contracts.
The order was issued by Ingham County Circuit Court Judge Rosemarie E. Aquilina on September 1, according to a statement from Michigan Attorney General Dana Nessel. It replaces a temporary restraining order from June and will remain in effect until a final ruling in the case.
Prediction markets are platforms where users trade contracts based on the outcome of future events, such as sports or elections.
Court requirements and penalties
The injunction requires Kalshi to use a state-licensed third-party geolocation service to enforce geofencing rules. Violations would result in a fine of $500,000 per day, the court filing states.
State lawsuit and broader legal battles
Michigan filed a lawsuit against Kalshi in March, arguing the platform violated state sports betting laws by allowing residents to trade sports-related contracts. Kalshi had attempted to move the case to federal court, but the request was denied, and the lawsuit returned to state court.
Attorney General Nessel stated, “Kalshi long attempted to pass itself off as a legitimate gaming operation in our state, and I am relieved that this order further protects Michigan residents from its predatory, unlicensed practices.”
The Block reported that Kalshi faces legal challenges in over a dozen states, with Connecticut filing a lawsuit last week to block sports contracts on the platform.
Market position despite legal pressure
Despite ongoing legal issues, Kalshi remains a leading prediction markets platform. In August, it recorded $38.67 billion in trading volume, compared to a combined $8.41 billion for competitors Polymarket and Polymarket US, according to data from The Block.
What is still unclear
Kalshi has not publicly commented on the court’s decision. The final outcome of the lawsuit and whether the platform will adjust its compliance measures beyond Michigan remain unresolved.
