Kalshi blocked from online sports betting, at least for now, amid Michigan lawsuit
The prediction market platform Kalshi has been blocked, according to Michigan Attorney General Dana Nessel, from offering unlawful online sports wagers.
Nessel’s office said Wednesday in a statement that a preliminary injunction had been issued in a lawsuit that began in March and followed a similar order in June that has since expired.
“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 statement.
The preliminary injunction was signed Monday by 30th Circuit Court Judge Rosemarie Aquilina.
In a statement, Kalshi head of communications Elisabeth Diana, reiterated previous statements that the company disagreed with the June order and would fight the case in court.
“Kalshi is subject to exclusive federal jurisdiction,” Diana said. “We won’t be bullied by interests that care more about protecting their monopolies than their consumers. In the meantime, we’re implementing restrictions.”
The company also provided a letter sent to the Attorney General’s Office on Friday by an attorney for Kalshi.
Andrew Porter, an attorney on behalf of Kalshi, wrote that competing market prediction platforms like Polymarket, Crypto.com , Robinhood and Coinbase had not been subject to the same scrutiny and legal actions.
He said the attorney general’s lawyers indicated that Kalshi was only the first predictive market to face lawsuits.
His letter quotes Aquilina, during an Aug. 24 conference call, as being willing to hear the other cases.
Porter’s letter quotes Aquilina as telling prosecutors, about the other companies: “They’re in violation of the law, and Kalshi now has been this test case. And you have these others. Bring them on in.”
The injunction
Aquilina’s injunction says Kalshi allows wagers from people starting at age 18, which is below the state gaming minimum age of 21. “If Kalshi is allowed to continue to offer sports wagers, the potential irreparable harm on Michigan’s youth would be profound,” according to the injunction, which cites mental health crises as well as lost revenue for schools, gambling intervention and other tax benefits. It also says there has been lost revenue for Detroit and tribal areas that receive gambling proceeds and where existing gambling operations follow state regulations.
The injunction requires Kalshi to use geofencing to block anyone in Michigan’s borders from accessing online sports wagers. It also prohibits the company from “(d)esigning, launching, or operating products that are functionally similar to internet sports betting, including but not limited to single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange betting, in-game betting, proposition bets, and straight bets for any persons located in Michigan.”
The Attorney General contends that Kalshi conducts business in Michigan without the licensing approval of the Michigan Gaming Control Board and in violation of the Lawful Sports Betting Act, which sets minimum ages and other requirements.
A temporary restraining order was issued in June, which halted Kalshi from engaging in or advertising its internet sports betting operation in Michigan, according to Nessel’s statement. The injunction includes a fine of $500,000 a day for violations.
