Michigan Wins Injunction to Keep Kalshi’s Sports Markets Out

Kalshi’s sports contracts won’t be returning to the Wolverine State anytime soon.

An Ingham County Court signed an order granting Michigan a preliminary injunction against the operator’s controversial offering. It follows a temporary injunction the state won in June, when Kalshi was initially forced to shut down its sports markets. 

The new injunction ensures that the markets will remain down until the legal fight between the two sides is resolved.

“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,” Attorney General Dana Nessel shared in a statement. “My office will continue to defend Michiganders and enforce our gaming laws, which ensure gambling revenue is regulated and distributed back into our communities.”

In addition to forcing Kalshi to geofence its sports markets, the order also prohibits Kalshi from advertising its sports markets to Michigan residents. 

Any violations of the order will result in daily fines of $500,000 until Kalshi is compliant again. 

This could be an issue for the operator, whom Nevada is accusing of violating a similar order. The issue involves Kalshi’s unwillingness to properly geofence the state, instead choosing to monitor IP addresses. Nevada is asking a court to enforce daily fines for the prediction platform’s non-compliance. 

Order Rips Kalshi, Sports Contracts

The language in the injunction order didn’t pull any punches when discussing Kalshi’s prediction platform. It consistently alluded to the operator using dishonest practices, making it a danger to Michigan residents.

The order criticizes the damage Kalshi is doing to the state, cities, and tribes. This is something the operator hasn’t been shy about admitting, arguing the industry’s federal protections allow it to legally compete against regulated sportsbooks. 

It also accused the operator of knowingly exploiting addiction by refusing to adhere to state responsible gambling protocols. This is a serious charge, given the country’s growing problem gambling crisis.