Michigan Judge Orders Kalshi To Halt Sports Contracts Till July 13

A Michigan judge has temporarily ordered Kalshi to stop offering sports contracts to residents of the state until at least 13 July.

Ingham County Circuit Court Judge Rosemarie Aquilina ruled that Kalshi’s sports contracts fall within Michigan’s gambling framework and therefore must comply with the state’s regulations.

A key issue in this case is the legal gambling age. Licensed sportsbooks in Michigan can only accept customers aged 21 and above, while Kalshi has allowed users aged 18 to participate.

Judge Aquilina said this gave the company a competitive advantage over licensed operators. According to the ruling, Kalshi had a “massive and unfair advantage over entities that comply with Michigan’s regulatory structure”.

“If Kalshi is allowed to continue offering sports wagers, then the potential irreparable harm on Michigan’s youth would be profound.”

Temporary Restrictions Cover Sports Trading And Platform Operations

The court order blocks Kalshi from carrying out a wide range of activities connected to sports contracts in Michigan.

Until at least 13 July, the company cannot offer, list, match, execute, clear or settle sports related contracts for anyone located in the state. The restrictions also prevent Kalshi from accepting deposits, stakes, fees or any other payments on sports contracts involving Michigan residents.

Kalshi is also prohibited from advertising or promoting sports contracts to people in Michigan through websites, mobile applications, email campaigns, push notifications, affiliates, influencers, social media or paid marketing placements.

Judge Aquilina additionally barred the company from allowing Michigan residents to create, verify, fund or maintain accounts for accessing sports contracts. The order covers products considered similar to internet sports betting.

Failure to comply with the geolocation requirements could result in fines of $120,000 for every day the order is breached. The judge noted that this figure was based on a conservative estimate derived from Kalshi’s reported trading volumes and estimated fee income.

Michigan Defends Consumer Protections As Kalshi Plans Appeal

Michigan Attorney General Dana Nessel welcomed the ruling, arguing that the state’s gambling laws exist to protect consumers and licensed operators.

She said unlicensed businesses should not be allowed to avoid the same regulatory obligations for the state’s gambling industry.

“We remain committed to enforcing a level playing field for all gambling platforms in Michigan and ensuring that companies cannot evade accountability or exploit consumers under the guise of a prediction market,” Nessel said.

Kalshi responded by confirming it disagrees with the decision. A spokesperson said the company intends to appeal the ruling while complying with the temporary restrictions.

Wider Legal Battle Over Prediction Markets Nationwide

Michigan is not the first state to challenge Kalshi’s sports contracts. Similar disputes have emerged in Kentucky and Massachusetts, where regulators remain confused on whether the products are regarded as sports betting under state law.

The US Commodity Futures Trading Commission argues that it has jurisdiction over federally regulated prediction markets and has launched legal action against several states to defend  its position. This dispute could ultimately reach the US Supreme Court. 

Kalshi is facing further regulatory fire from Michigan authorities. The company has been banned from offering its sports contracts to residents of the state till at least July 13. Kalshi is currently working on an appeal, against a background of regulatory cases from other states.