Michigan is officially crimping Kalshi’s style.
- A Michigan court granted a temporary restraining order against Kalshi, barring it from operating or advertising in the state for two weeks.
- Kalshi disputes the ruling, argues it is regulated by the federal CFTC, but says it will impose restrictions for Michigan users while continuing its legal fight.
- The decision means there are now two states that have limits on Kalshi, with Nevada being the second.
The state’s attorney general, Dana Nessel, announced on Monday that her office was granted a two-week temporary restraining order against Kalshi over the latter’s allegedly illegal offering of online sports betting in Michigan.
Kalshi says the company disagrees with the decision and will continue to fight it in court, as the prediction market operator maintains it is solely subject to oversight by the federal Commodity Futures Trading Commission (CFTC).
“It's no surprise that we disagree with the state's decision and will fight it in court,” Kalshi's head of comms Elisabeth Diana said in a statement provided to Covers. “Kalshi is subject to exclusive federal jurisdiction. We won’t be bullied by interests that care more about protecting their monopolies than their consumers. In the meantime, we're implementing restrictions.”
Nessel sued Kalshi in March. And, in short, the state claims that the prediction market operator was violating Michigan sports betting law with its sports-related event contracts.
Kalshi then tried to move the case to federal court before it was bounced back to the state level last week.
“The (Kalshi) platform allows users to place wagers on the likelihood of sports-related outcomes, conduct transactions through widely used financial systems, and participate in what the lawsuit alleges constitutes unlicensed gambling activity,” Monday’s press release said. “The Attorney General contends that Kalshi conducts this business in Michigan without the licensing approval of the Michigan Gaming Control Board in violation of the [Lawful Sports Betting Act].”
Today, @miattygen Dana Nessel secured a temporary restraining order in the Ingham County Circuit Court halting KalshiEx, LLC from unlawfully offering online sports wagers to Michigan residents. Read more at https://t.co/gyVOzHLr7O pic.twitter.com/47hPkuXvOp
— Michigan Attorney General Dana Nessel (@MIAttyGen) June 29, 2026
Monday’s ruling and Kalshi’s restrictions now mean the prediction market platform has its business limited in two states: Michigan and Nevada. And while litigation continues, the latest ruling highlights the stakes of the lawsuits. Although Kalshi claims it is under federal oversight, if states can curb its operations, that could put a damper on the rapid growth of prediction markets.
“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,” Nessel said in a press release.
Two weeks is a long time
The Michigan ruling could also be pointed to in the growing number of other lawsuits going on in the U.S. involving the exchanges and their sports-related event contracts. Prediction market operators have come under fire from numerous state gambling regulators for, in the eyes of those watchdogs, simply offering sports betting by another name.
Monday's court order bars Kalshi from doing business in Michigan, including advertising itself to potential users. The order also requires Kalshi to hire a third-party geolocation services provider that is licensed by a gaming regulator. A failure to do so would result in a daily $120,000 fine. The temporary restraining order is for two weeks, in effect until July 13.
