Kalshi, an online prediction market platform, is barred from engaging in or advertising its sports gaming operation in Michigan amid an ongoing legal battle with the state.
The lawsuit, filed by Michigan Attorney General Dana Nessel in March, alleges Kalshi illegally allows users to place sports bets under the guise of trading event contracts.
The suit contends Kalshi does not hold a Michigan gaming license and violates Michigan’s Lawful Sports Betting Act.
Nessel's team is operating in conjunction with the Michigan Gaming Control Board, which alleges Kalshi fails to implement state mandated responsible gaming protections such as wager limits, age verification and access to addiction resources.
In a news release, Henry Williams, executive director of the MGCB, said Kalshi's operation puts vulnerable Michiganders at risk.
“Our licensed sportsbooks follow strict rules designed to protect consumers — verifying that bettors are at least 21 years old, offering responsible-gaming tools, and protecting patron funds," Willaims said. "Kalshi has refused to play by the same rules, and our agency will continue to use every regulatory and legal tool available to make sure Michigan families, our schools, and our first responders are protected from this unchecked exploitation.”
The MGCB went on to say operating without a license allows Kalshi to duck fees, taxes and other compliance costs legal sportsbooks pay.
After it was filed, Kalshi tried to move the case to a federal court. The move was blocked by a ruling from the United States District Court for the Western District of Michigan, which kicked the case back to the state level.
Litigation continues in the Ingham County Circuit Court, which recently granted the ongoing temporary restraining order against Kalshi.
Elisabeth Diana, Kalshi's head of communications, told WCMU they plan to fight the decision in court.
"Kalshi is subject to exclusive federal jurisdiction. We won’t be bullied by interests that care more about protecting their monopolies than their consumers," Diana said in a statement. "In the meantime, we're implementing restrictions.”
The restraining order will remain in place for 14 days. Noncompliance will result in an $120,000 fine.
