Judge blocks Kalshi sports markets in Michigan

Ingham Circuit Court Judge Rosemarie E. Aquilina on Monday issued a temporary restraining order that bars Kalshi from offering sports contracts to users in Michigan. The order requires Kalshi to block trades on sports betting contracts for Michigan users and to use a geolocation service licensed by the Michigan Gaming Control Board. The restraining order remains in effect until at least July 13, when the state may seek a preliminary injunction.

The order ties financial penalties to Kalshi’s compliance. Aquilina set a $120,000 daily fine for each day Kalshi fails to meet the geolocation requirement. The judge based the amount on a court estimate of $600 million in daily trading volume on the exchange, dividing that figure by 50 to approximate Michigan’s share and calculating 1% of that share as Kalshi’s facilitation fees.

The court said it would consider a geolocation vendor licensed in another state only if the provider meets Michigan’s geofencing standards.

The restraining order follows a federal judge’s recent decision not to move the case into federal court. Michigan is the third state to bar Kalshi’s sports markets, after Nevada and Massachusetts; the Massachusetts ban is stayed pending appeal.

Kalshi began offering sports contracts in January 2025 after changes at the Commodity Futures Trading Commission expanded what prediction markets can list. The company contends CFTC oversight places it under federal jurisdiction. The CFTC has filed suits against states that sought to block prediction exchanges.

Michigan Attorney General Dana Nessel wrote that the state must protect tax revenue from licensed sports betting operators and that Kalshi was “masquerading as an investment opportunity.” Nessel added the state would enforce a level playing field for gambling platforms in Michigan.

Nevada regulators have raised concerns about Kalshi’s geolocation controls, saying the company’s in-house system relied on IP addresses and was built for under $200,000. Nevada officials have asked a court there to find Kalshi in contempt of that state’s injunction and to impose a similar daily fine until the geolocation system meets Nevada standards.

Elisabeth Diana, Kalshi’s head of communications, asserted that the company is subject to exclusive federal jurisdiction and plans to contest the Michigan order while implementing restrictions.

The case centers on whether prediction exchanges operating under CFTC oversight can be regulated by state gaming authorities and whether state geofencing rules apply to their sports contracts.