Michigan Court Issues Injunction Against Prediction Market Platform Offering Sports Wagers
A recent ruling from a Michigan court has prohibited a prediction market platform from providing sports wagers to residents of the state. Failure to comply with the order could result in significant daily fines for the platform.
The court has mandated that KalshiEx, LLC implement geofencing measures using a state-licensed third-party provider to block access for Michigan residents. Any violations of this requirement will lead to a daily fine of $500,000.
This injunction specifically forbids KalshiEx from engaging in activities such as offering, facilitating, advertising, or processing internet sports betting contracts for individuals in Michigan, regardless of their age.
The legal action was initiated by Michigan Attorney General Dana Nessel, who filed a lawsuit in March 2026 accusing the platform of operating unlicensed sports betting activities in violation of the Lawful Sports Betting Act.
Previously, a temporary restraining order had been issued in June 2026 following a federal court remand.
The court justified its decision by citing concerns related to the protection of youth, mental health considerations, the need to prevent unfair competition with licensed operators, and the potential loss of revenue for schools, tribes, and public services.
Attorney General Nessel emphasized KalshiEx’s deceptive practices in attempting to present itself as a legitimate gaming entity in the state.
“Kalshi has long tried to deceive Michigan residents by portraying itself as a legitimate gaming operation. The court’s order provides further protection against the platform’s unlicensed and predatory practices. My office remains committed to upholding Michigan’s gaming laws to safeguard our communities.”
The court order highlighted the detrimental impact of KalshiEx’s operations on Michigan residents.
“The exploitation of Michigan residents by Kalshi’s sports betting operation disguised as an investment opportunity is causing immediate and irreparable harm to our state and its most vulnerable citizens.”