Key facts
- A Michigan judge issued a preliminary injunction against Kalshi, barring sports bets.
- Kalshi faces a $500,000 daily fine for non-compliance.
- The order prohibits Kalshi from accepting deposits, advertising, or allowing account creation/funding by Michigan residents.
- The lawsuit was initiated by Michigan Attorney General Dana Nessel, alleging Kalshi violated state law on sports gambling.
- New Jersey is petitioning the US Supreme Court to hear a case that could determine jurisdiction over prediction markets.
A Michigan judge has issued a preliminary injunction against Kalshi, barring the prediction market platform from offering sports bets to state residents and threatening a $500,000 daily fine for non-compliance. Ingham County Circuit Judge Rosemarie Aquilina approved the order, stating that Kalshi's operations, which she described as a "sports betting operation masquerading as an investment opportunity," pose an immediate and irreparable harm to Michigan residents.
The injunction prohibits Kalshi from accepting deposits, advertising, or allowing account creation or funding by Michigan residents. It also applies to products deemed functionally similar to sports betting. The lawsuit was filed by Michigan Attorney General Dana Nessel, who alleges Kalshi violates state law on sports gambling.
This ruling is part of a broader legal challenge against prediction market companies. On the same day, New Jersey officials petitioned the US Supreme Court to review their case against Kalshi, which could clarify whether federal or state authorities have jurisdiction over such platforms. Some US lawmakers have also proposed legislation to regulate event contracts that resemble sports bets.