Court Orders Kalshi to Halt Sports Contracts in Michigan

The Wolverine State picked up a massive legal win this week.

An Ingham County Circuit Court has ordered Kalshi to temporarily halt all sports contracts in Michigan. The operator, whose unique prediction markets are often a focal point in any comprehensive Kalshi review, will also be banned from advertising any sports contracts in the state or accepting new customers.

The order went into effect on Monday and will last for 14 days. 

The ruling delivers an important victory for the Michigan Gaming Control Board. The Attorney General’s office filed the request on its behalf as the regulator, which has been fighting to protect Michigan’s sports betting market from the emerging industry.

“Our gambling laws exist to protect Michiganders from unlicensed, predatory operations, and failing to comply with them carries serious legal consequences,” Michigan AG Dana Nessel shared in a press release. “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.”

Michigan is the second state to pause sports betting markets, joining Nevada.

Order is Grim Omen for Prediction Operators

The fight over sports prediction markets has been raging for a year now, with courts across the US delivering mixed results. There are dozens of lawsuits involving the controversial industry, leading many to believe the US Supreme Court will ultimately decide on the future of US prediction market apps. 

While Michigan’s lawsuits won’t be the first to reach the nation’s highest court, the recent order against Kalshi is a bad sign for operators offering sports contracts. 

Nevada’s success in halting sports contracts was significant, but some worried the gambling-centric state would be the lone exception. Its powerful gaming lobby carries weight at the state and national level, giving it the power to stand up to the federally protected prediction market industry.

Other states have asked for similar orders, but have lost in court. Michigan’s success will help set a new precedent that could benefit many other markets looking to stop sports contracts. While appeals and federal intervention could overturn this order, the initial success suggests the industry’s legal defense may be faltering.