A recent ruling in Michigan has barred a prediction market platform from offering sports wagers to residents of the state. Failure to comply with the order could result in significant daily fines for the platform.
According to the official document, KalshiEx, LLC is required to implement geofencing using a third-party provider licensed by the state. Any violations of this requirement will lead to a daily fine of $500,000.
The injunction specifically prohibits the platform from engaging in offering, facilitating, advertising, or processing any internet sports betting contracts for individuals in Michigan, including those who are 18 years old and above.
The Attorney General of Michigan, Dana Nessel, initiated legal action against KalshiEx, LLC in March 2026, alleging unauthorized sports betting activities under the Lawful Sports Betting Act.
This ruling comes after a temporary restraining order was issued in June 2026, following a federal court remand.
The court’s decision to impose the ban was motivated by concerns regarding the potential risks to youth, protection of mental health, unfair competition with licensed operators, and the impact on revenue for schools, tribes, and public services.
Attorney General Nessel has emphasized the platform’s attempt to present itself as a legitimate gaming entity in the state.
“Kalshi has been trying to operate as a legitimate gaming platform in Michigan, and I am pleased that this order provides further protection to residents against its unlicensed and predatory practices. My office remains committed to upholding the gaming laws of Michigan to ensure that gambling revenue is regulated and reinvested in our communities.”
The court order describes Kalshi’s activities as harmful to the people of Michigan.
“Without intervention, Michigan and its vulnerable citizens will continue to suffer immediate and irreparable harm from being exploited by Kalshi’s sports betting operation disguised as an investment opportunity.”