jili tutorial

Michigan Extends Kalshi Sports Contract Ban, Sets $500K Daily Penalty

By jili tutorial · September 4, 2026

Michigan Extends Ban on Kalshi Sports Contracts, Imposes $500K Daily Fine

Court Blocks Kalshi’s Operations Amid Concerns Over Youth, Problem Gambling, and Revenue

A Michigan judge has issued a preliminary injunction preventing Kalshi from offering sports event contracts in the state, ruling that the exchange’s activities threaten state gaming revenue, consumer protections, and tribal interests. The order, handed down by Ingham County Circuit Court Judge Rosemarie Aquilina on September 1, extends restrictions first imposed in June when she granted a temporary restraining order requested by Michigan Attorney General Dana Nessel.

The injunction prohibits Kalshi from offering, advertising, marketing, or soliciting sports event contracts within Michigan. It also requires the company to use a third-party geolocation provider licensed by the Michigan Gaming Control Board to block access from the state. If Kalshi fails to comply with the geolocation requirements, it faces a daily fine of $500,000. The ban will remain in effect until a final order is issued in the case.

“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,” Nessel said.

Kalshi must also deliver the injunction to every futures commission merchant (FCM) offering its sports contracts to customers within three business days. However, the company will not be held liable for an FCM’s subsequent conduct, as it neither controls which customers those firms serve nor possesses their location information.

Judge Highlights Age Limits, Gaming Revenue, and Tribal Harm

In granting the injunction, Judge Aquilina found that Michigan and its residents would suffer “immediate and irreparable harm” without relief. She described Kalshi as a “sports betting operation masquerading as an investment opportunity.”

Among the court’s findings was the discrepancy between Michigan’s minimum sports betting age of 21 and Kalshi’s policy of allowing users as young as 18 to place wagers. “If Kalshi is allowed to continue to offer sports wagers, the potential irreparable harm on Michigan’s youth would be profound,” the judge wrote. The order also noted that Kalshi “takes advantage of serious mental health issues” and operates without the patron protections required under Michigan’s regulated gaming framework.

Aquilina further found that by failing to comply with state regulations, Kalshi gains an unfair competitive advantage over companies that adhere to Michigan’s gaming laws. The financial impact was also a key concern: the judge ruled that Kalshi’s operations undercut funding for schools, problem gambling prevention, economic development, and first responders. She specifically cited gaming tax revenue that Detroit uses for law enforcement, public safety, youth programs, and infrastructure.

The court separately addressed tribal gaming interests, concluding that Kalshi’s conduct “negatively impacts Tribes by depriving them of the revenue they need to operate their governments and serve their citizens, while also ignoring their sovereignty.”

Michigan Joins Other States in Enforcing Injunctions Against Kalshi

Nessel filed a lawsuit against Kalshi in March, alleging that the exchange’s sports-event contracts constitute unlicensed sports betting under Michigan’s Lawful Sports Betting Act. Kalshi removed the case to federal court, but it was subsequently remanded to Ingham County Circuit Court. The dispute was further complicated when the Commodity Futures Trading Commission directed the exchange to continue processing trades involving Michigan customers.

Michigan is not alone in securing a preliminary injunction against Kalshi. A Nevada state court has similarly barred the company from offering sports event contracts without state gaming approval, and a Washington judge granted a preliminary injunction in July. As a result, Kalshi has implemented geofencing for sports, elections, and several other categories of event contracts.

The Michigan order also comes just days after the Ninth Circuit upheld the dissolution of a separate federal injunction that had protected Kalshi from Nevada gaming enforcement. The appellate court found that Kalshi had not shown that federal commodities law preempts Nevada’s regulation of its sports contracts.

This article originally appeared on Gambling Insider.