Michigan Court Imposes $500,000 Daily Fine on Kalshi Over Betting

Ingham County Circuit Court Judge Rosemarie E. Aquilina issued the injunction on Sept. 1, formalizing restrictions that have governed the platform since a temporary restraining order was established in June. Under the new mandate, Kalshi is prohibited from offering, listing, or settling any sports-related contracts—including moneyline markets, parlays, and proposition bets—for users located within Michigan. To ensure compliance, the court requires Kalshi to utilize a third-party geolocation provider licensed by the Michigan Gaming Control Board.

Michigan Attorney General Dana Nessel initiated the legal challenge in March, alleging that Kalshi’s derivatives products function as unlicensed sports betting in violation of the Michigan Lawful Sports Betting Act. While Kalshi maintains that its contracts fall under federal jurisdiction via the Commodity Futures Trading Commission, the state continues to assert its right to apply local gambling regulations. The ongoing legal battle highlights a broader national conflict, with states like Connecticut, Nevada, and New Jersey similarly clashing with prediction platforms over the limits of federal versus state oversight. The Michigan injunction will remain in effect until the court reaches a final ruling on the underlying lawsuit.