Michigan Court Orders Kalshi to Continue Blocking Sports Prediction Markets

A Michigan state court has ordered prediction markets platform Kalshi to keep blocking residents from accessing its sports-related contracts, converting an earlier temporary restraining order into a preliminary injunction. The ruling, issued by an Ingham County Circuit Court judge, will remain in place until the case reaches a final decision.

Under the order, Kalshi must use a licensed third-party geolocation provider to properly geofence Michigan users in compliance with state gaming regulations. Any violation of the order could result in penalties of $500,000 per day.

Background of the Legal Dispute

Michigan’s Attorney General filed the lawsuit against Kalshi earlier this year, arguing the company allowed residents to participate in sports betting disguised as event contract trading. Kalshi had attempted to shift the case to federal court, but it was sent back to the state level after the state’s request was granted.

Part of a Broader Nationwide Legal Battle

Kalshi continues to face mounting legal pressure from multiple states, with more than a dozen jurisdictions pursuing lawsuits or enforcement actions against the platform. Despite this, the company remains the largest player in the prediction markets space, reporting tens of billions of dollars in trading volume last month alone, far outpacing its closest competitors.