Kalshi Ordered by Michigan Court to Halt Sports Prediction Contracts for 14 Days

Kalshi has been ordered by a Michigan court to temporarily suspend its sports event contracts business in the state.

The Block reported June 30 that Judge Rosemary E. Aquilina of Michigan's Ingham County Circuit Court issued a 14-day temporary restraining order against Kalshi. Michigan Attorney General Dana Nessel announced the order, which remains in effect through July 13. The court said Kalshi could face fines of $120,000 a day if it fails to implement the geofencing measures required under the order.

Michigan's gambling laws exist to protect residents from unlicensed and predatory businesses, Nessel said, and violations carry serious legal consequences.

The order came shortly after the US District Court for the Western District of Michigan sent the state's lawsuit against Kalshi back to state court rather than federal court. Kalshi had sought to move the case to federal court, but the effort was rejected. Michigan authorities sued in March, alleging that Kalshi was offering unlicensed gambling services in violation of the state's legal sports betting law despite operating as a federally regulated platform.

The case is part of a broader jurisdictional clash between state and federal authorities over prediction markets. More than 10 US states have issued similar enforcement orders against platforms including Kalshi and Polymarket US. The Commodity Futures Trading Commission and the platforms argue that federal jurisdiction preempts state law and allows them to operate nationwide, and they have sued states in response.

Kalshi's trading volume has continued to grow despite the legal dispute. Data from The Block showed the platform's cumulative trading volume this month topped $30 billion, up 79% from the previous month. Rival platform Polymarket also saw volume increase on interest tied to the 2026 FIFA World Cup, but its gap with Kalshi has widened in recent months.