Kalshi Hit With Michigan Sports Betting Ban and $120K Daily Fine

Published on: June 30, 2026, 11:04 AM EDT

A Michigan judge has temporarily blocked prediction market platform Kalshi from offering sports event contracts in the state and warned the company it could face fines of $120,000 per day if it fails to comply.

Key Takeaways

Michigan secured a temporary restraining order against Kalshi’s sports event contracts.
Kalshi must geofence its sports offerings in the state for 14 days and use an approved geolocation provider.
The company faces a $120,000 daily fine for failing to comply with the court’s order.
The case adds to growing legal battles over whether prediction markets fall under federal or state regulation.

What Happened?

An Ingham County Circuit Court judge granted Michigan Attorney General Dana Nessel’s request for a temporary restraining order against Kalshi, temporarily preventing Michigan residents from placing sports related trades on the platform through July 13. The ruling came after a federal judge sent the case back to state court, finding that the dispute centered on Michigan law.

State officials argue that Kalshi’s sports event contracts amount to unlicensed sports betting and violate Michigan’s Lawful Sports Betting Act.

🚨KALSHI HIT WITH $120K DAILY FINES IN MICHIGAN COURT

A Michigan court issued a 14-day restraining order blocking Kalshi from offering or advertising sports event contracts to Michigan residents through July 13.

Kalshi faces $120,000 in daily fines if it violates the geofencing… pic.twitter.com/o62NumwQrk
— Coin Bureau (@coinbureau) June 30, 2026

Michigan Court Orders Kalshi to Halt Sports Contracts

Judge Rosemarie Aquilina ruled that Kalshi’s sports event offerings could cause significant harm to Michigan residents and undermine the state’s regulated gambling industry.

In the four page order, Aquilina said the platform allowed users as young as 18 to participate in sports related contracts, even though Michigan requires sports bettors to be at least 21 years old.

Aquilina wrote:

“

If Kalshi is allowed to continue to offer sports program wagers, the potential irreparable harm on Michigan’s youth would be profound.

The judge also said Kalshi’s operations created a “massive and unfair advantage over entities that comply with Michigan’s regulatory structure.“

Under the order, Kalshi must use a third party geolocation services provider licensed by the Michigan Gaming Control Board to ensure residents cannot access its sports event contracts. If the company uses a provider licensed in another state, Michigan regulators must first determine whether the service meets state requirements.

$120,000 Daily Fine Raises Stakes

The court’s order carries significant financial consequences. Kalshi faces a $120,000 fine for each day it fails to comply with the restrictions.

The temporary restraining order will remain in place for 14 days, making Michigan the second state after Nevada to formally block Kalshi’s sports related offerings.

Massachusetts has also challenged the company’s operations, although a similar order there is currently on hold while legal proceedings continue.

Attorney General Says State Will Enforce Gambling Laws

Michigan Attorney General Dana Nessel praised the ruling and said the state remains committed to protecting consumers and maintaining a fair regulatory environment.

Nessel said:

“

Our gambling laws exist to protect Michiganders from unlicensed, predatory operations, and failing to comply with them carries serious legal consequences.

I am proud of the attorneys in my office who not only kept this case in state court but also secured an order protecting residents as this litigation moves forward. 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.

The legal battle began in March when Nessel sued Kalshi, alleging that the company was offering sports betting products disguised as event contracts.

Federal Versus State Regulation Fight Intensifies

Kalshi has consistently argued that its prediction markets are regulated by the Commodity Futures Trading Commission, making them federally supervised financial products rather than gambling offerings subject to state laws.

The company previously sought to move the case to federal court. However, U.S. Judge Paul Maloney ruled that the dispute belonged in state court because Michigan’s lawsuit is based on alleged violations of state law.

The broader case could have significant implications for the future of prediction markets in the United States. If more states adopt Michigan’s approach, platforms such as Kalshi could face a patchwork of state restrictions despite federal oversight claims.

CoinLaw’s Takeaway

In my experience, the fight between prediction markets and state gaming regulators is only getting started. I found this case particularly important because it goes beyond one company or one state. The real issue is whether sports prediction contracts should be treated as financial products or as traditional sports betting. The answer could reshape the future of event based trading platforms across the United States and determine how far federal regulation can go when states believe their gambling laws are being bypassed.