Michigan court orders Kalshi to keep blocking sports prediction markets

A Michigan state court has issued a preliminary injunction requiring Kalshi to continue blocking state residents from accessing sports-related event contracts.Ingham County Circuit Court Judge Rosemarie E. Aquilina issued the order on Tuesday, according to a Wednesday statement from the Michigan Attorney General Dana Nessel. It will remain in effect until a final ruling is made in the case.The injunction requires the prediction markets platform to use a third-party geolocation services provider licensed by the state's gaming regulator to comply with geofencing specifications. Violations would result in a fine of $500,000 per day, according to the filing.The Michigan state filed the lawsuit against Kalshi in March, arguing that the company violated the state's sports betting law by enabling Michigan residents to "engage in sports betting under the guise of trading event contracts."The preliminary injunction converted an earlier temporary restraining order issued in June. Kalshi had attempted to move the case to the federal level, but the Western District of Michigan court granted the state's motion to remand the lawsuit back to the state court."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,” Nessel said in the Wednesday statement.The Block has reached out to Kalshi for comment.Nationwide fightKalshi continues to face legal challenges from state-level authorities, with more than a dozen states taking enforcement action or filing lawsuits against the prediction markets platform.Last week, Connecticut sued Kalshi to block the platform from offering sports contracts, escalating the state's months-long legal fight against the platform.Despite the mounting legal pressure, Kalshi remains the dominant player in the prediction markets sector. It recorded $38.67 billion in trading volume in August, compared with a combined $8.41 billion on Polymarket and Polymarket US, according to The Block's data dashboard.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.