Michigan Secures Court Order Against Kalshi Over Unlicensed Sports Prediction Markets, $120,000 Daily Fine Imposed

Michigan Attorney General Dana Nessel secured a temporary restraining order against KalshiEX, LLC on June 30, blocking the prediction market operator from offering sports event contracts to Michigan residents and ordering the company to implement geolocation technology or face fines of $120,000 per day. The order, signed by Ingham County Circuit Court Judge Rosemarie E. Aquilina, represents one of the most consequential state legal actions taken against a prediction market platform to date.

The Michigan Gaming Control Board requested the TRO in partnership with the AG’s office after Kalshi failed to obtain a state sports betting license. The MGCB has maintained that Kalshi’s sports event contracts are indistinguishable from online sports betting, which in Michigan requires a license issued through the state’s established regulatory framework. The order is in effect for 14 days while the underlying lawsuit moves forward.

Terms of the Order

Under the court’s ruling, Kalshi cannot offer, advertise, or facilitate internet sports wagering to any person located in Michigan. The company is specifically required to deploy state-compliant, third-party geolocation technology consistent with MGCB Technical Bulletin No. 2024-03. Failure to comply triggers a $120,000 per day financial penalty.

The order came after Kalshi attempted to move the case to federal court, arguing its contracts are federally regulated financial instruments under the exclusive jurisdiction of the Commodity Futures Trading Commission. The U.S. District Court for the Western District of Michigan denied that argument last week and remanded the case back to state court, clearing the way for the MGCB and AG’s office to seek the TRO.

Kalshi Responds, Vows to Fight

Kalshi pushed back immediately. In a public statement, the company said it “disagrees with the state’s decision and will fight it in court,” arguing that it “is subject to exclusive federal jurisdiction” and accusing the state of acting on behalf of established gambling interests. The company said it would comply with restrictions in the interim while pursuing its legal challenge.

Kalshi’s position reflects the platform’s broader argument that its event contracts are CFTC-regulated derivatives, not gambling products under state law. That argument has prevailed in some federal court proceedings but has not stopped states from pursuing their own enforcement actions. Michigan is now the latest state to obtain a court order against the company, joining a growing list that includes Minnesota, Connecticut, Illinois, and New York.

Michigan’s move is notable given the state’s status as one of the premier online sports betting markets in the country. State-licensed sportsbooks including DraftKings, FanDuel, BetMGM, and others operate legally under MGCB oversight, generating substantial tax revenue for the state. Regulators have argued that prediction markets undermine that framework by offering functionally identical products without licensing or consumer protection requirements.

A Widening National Battle

The legal conflict between states and prediction market platforms has accelerated dramatically in 2026. Monthly trading volume on Kalshi and Polymarket climbed to nearly $220 billion — up from $28 billion a year ago — with sports contracts driving the bulk of that growth. The CFTC has responded to state enforcement actions by filing lawsuits against nine states, arguing federal law gives it exclusive authority over these markets.

Legal observers believe the question of state versus federal jurisdiction over sports prediction markets could eventually reach the Supreme Court. In the meantime, Michigan residents who use DFS platforms and prediction markets are watching closely as the state’s legal action plays out. For bettors, the distinction between what platforms are available in any given state continues to shift as this legal landscape evolves.