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- A Michigan court granted a preliminary injunction blocking Kalshi from offering sports event contracts within the state.
- Kalshi must geofence Michigan users or face fines of $500,000 per day while the licensing lawsuit continues.
Michigan has secured a preliminary injunction barring Kalshi from offering online sports wagering-style event contracts in the state, according to Attorney General Dana Nessel.
The order requires Kalshi to geofence Michigan residents and anyone physically within Michigan’s borders from accessing the contracts. Nessel’s office said violations would carry a $500,000-per-day fine. The ruling matters because it keeps Kalshi’s sports-related contracts out of Michigan while the state’s lawsuit over licensing and gambling law compliance continues.
Injunction keeps Kalshi’s sports contracts blocked in Michigan
Nessel announced that her office obtained the preliminary injunction against KalshiEx, LLC, which she said was “unlawfully offering online sports wagers in Michigan.” The state argues Kalshi’s event contracts amount to sports betting conducted without approval from the Michigan Gaming Control Board.
In a statement, Nessel said, “Kalshi long attempted to pass itself off as a legitimate gaming operation in our state, and I am relieved that this order further protects Michigan residents from its predatory, unlicensed practices.”
She added, “My office will continue to defend Michiganders and enforce our gaming laws, which ensure gambling revenue is regulated and distributed back into our communities.”
The attorney general’s office also described the products at issue as “illegal sports betting contracts.”
Case returns to state court after earlier restraining order
The dispute began in March, when Nessel filed suit alleging Kalshi violated Michigan’s Lawful Sports Betting Act by allowing residents to engage in sports betting “under the guise of trading event contracts.” The state says Kalshi was conducting that business in Michigan without the required state licensing.
Before this latest ruling, Nessel’s office had already secured a temporary restraining order in June that halted Kalshi from engaging in or advertising its internet sports betting operation in the state.
The case also briefly moved into federal court. Kalshi sought to remove it to the U.S. District Court for the Western District of Michigan, but the motion to remand was granted, sending the matter back to Ingham County Circuit Court.
What comes next is the underlying case itself. The preliminary injunction keeps the geofencing requirement in place while that litigation proceeds. The source did not include any response from Kalshi or say whether the company plans to appeal the order.
Source: As reported by news.google.com.
