Kalshi Blocks Michigan Users from Sports Wagers After Court Ruling
Kalshi has blocked all users in Michigan from accessing sports-related wagers, following a significant ruling against the prediction market platform in state court.
On Monday, a circuit court judge in Ingham County issued a temporary restraining order, prohibiting Kalshi from offering sports markets in the state for 14 days. The ban, requested by state regulators, comes as Kalshi and Michigan continue to clash over the regulatory status of prediction markets. State regulators nationwide contend these platforms constitute illegal gambling operations, while the platforms, supported by the Trump administration, argue they are financial instruments regulated at the federal level by the Commodity Futures Trading Commission (CFTC).
To grant Michigan’s motion for a temporary restraining order, Judge Rosemarie Aquilina determined that the state would suffer irreparable harm if Kalshi were permitted to continue offering sports-related prediction markets while the case proceeded. She ultimately found this to be the case.
“Michigan and its most vulnerable citizens are suffering and will continue to suffer immediate and irreparable harm absent relief from being exploited by Kalshi’s sports betting operation masquerading as an investment opportunity,” Aquilina ruled.
She further stated that the company, by offering prediction markets to customers as young as 18, risked inflicting “profound” levels of “irreparable harm on Michigan’s youth,” and “takes advantage of serious mental health issues” without providing the safeguards required of licensed gambling operations.
As of Tuesday afternoon, Michigan users reported on social media being unable to access sports wagers on the Kalshi app.
“It’s no surprise that we disagree with the state’s decision and will fight it in court,” a Kalshi spokesperson said in a statement shared with Decrypt. “In the meantime, we’re implementing restrictions.”
Michigan Attorney General Dana Nessel celebrated the restraining order, pledging to continue the fight against Kalshi and all other prediction market platforms operating in the state.
“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,” she said in a statement.
Kalshi has previously faced similar temporary bans in Nevada and Massachusetts. The ongoing legal battle over prediction market regulation is unfolding across state and federal courts nationwide, and is likely to ultimately be decided by the U.S. Supreme Court.
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