Michigan Court Temporarily Blocks KalshiEX Sports Betting Products

DETROIT: Michigan’s gaming regulator says a state court has temporarily barred KalshiEX from offering unlicensed sports betting to residents.

The order adds to the growing legal fight over whether sports prediction markets should be treated as financial contracts or regulated gambling products.

The Michigan Gaming Control Board announcement said Ingham County Circuit Court granted a temporary restraining order against KalshiEX, LLC. The order immediately bars the prediction-market platform from offering unlicensed internet sports betting to people located in Michigan.

Court Order Targets KalshiEX in Michigan

The temporary restraining order was signed by Judge Rosemarie E. Aquilina and secured on behalf of the Michigan Gaming Control Board by the Michigan Attorney General’s Office. The MGCB said the order forms part of its effort to hold unlicensed gambling operators accountable.

The order lasts 14 days and prohibits Kalshi and anyone acting on its behalf from offering, advertising or facilitating internet sports betting to anyone in Michigan. It also directs Kalshi to implement state-compliant third-party geolocation technology to prevent wagers from Michigan residents.

The court order includes a fine of $120,000 per day for noncompliance. The MGCB said the case centers on sports-related event contracts that the agency views as unlicensed sports wagers.

MGCB Executive Director Henry Williams said Kalshi was offering “sports betting dressed up as investing” without the consumer protections required of licensed sportsbooks. He said Michigan’s licensed operators must verify that bettors are at least 21, provide responsible-gaming tools and protect patron funds.

Age and Responsible Gambling Concerns Cited

Michigan law requires sports bettors to be at least 21 years old. The MGCB said Kalshi’s model created concern because it could reach younger residents, including people as young as 18, who would not be eligible to place legal sports wagers in the state.

The regulator also pointed to problem gambling safeguards. Licensed Michigan sports betting operators must provide responsible-gaming protections, including self-exclusion programs, deposit and wagering limits and links to addiction resources overseen by the MGCB.

The MGCB said Kalshi does not provide the same mandated protections. The agency said that gap exposed Michigan residents to sports betting risks without the regulatory backstop required in the state’s licensed market.

The regulator also framed the case as a revenue and market-integrity issue. It said unlicensed operators avoid the fees, taxes and compliance costs paid by licensed sportsbooks, while licensed internet sports wagering revenue supports state funds tied to schools, problem gambling prevention, first responders, economic development and Detroit public services.

Prediction Market Dispute Widens

The Michigan order fits a broader state-level push against sports-related prediction markets. Washington State also sued Kalshi for alleged illegal sports betting, arguing that the company’s sports event contracts crossed into gambling activity that requires state oversight.

Michigan officials also pointed to recent federal court activity involving other platforms. The MGCB said a U.S. district judge recently denied requests by Polymarket and Robinhood for preliminary injunctions that would have blocked Michigan from enforcing its gambling laws against sports-related prediction contracts.

The dispute has become one of the most contested issues in U.S. gambling regulation. The wider prediction market debate centers on whether event contracts should be governed mainly as financial products or restricted under state gambling and sports betting laws.

Williams said Michigan will not allow companies to avoid state gambling rules by changing how products are described. He said the MGCB’s position is that a sports wager remains a sports wager whether it is called an event contract or a trade.

The temporary order does not resolve the broader legal question around prediction markets. It does, however, give Michigan regulators immediate court backing as they seek to stop KalshiEX from offering sports-related products to residents without a Michigan gaming license.

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