Kalshi hit by Michigan with restraining order

(PRESS RELEASE) -- Today, Michigan Attorney General 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. The state court’s order follows a ruling by the U.S. District Court for the Western District of Michigan last week, which granted the Attorney General’s motion to remand the lawsuit back to state court after Kalshi attempted to remove the case to the federal level.

“Our gambling laws exist to protect Michiganders from unlicensed, predatory operations, and failing to comply with them carries serious legal consequences,” said Attorney General Nessel. “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.”

Attorney General Nessel filed a lawsuit against Kalshi in March, alleging the derivatives exchange and prediction market company violated Michigan’s Lawful Sports Betting Act (LSBA). The Attorney General asserts in the lawsuit that Kalshi offers an online operation that enables Michigan residents to engage in sports betting under the guise of trading event contracts. The 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. 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 LSBA.

After the lawsuit was filed in state court, Kalshi attempted to move the case to the United States District Court for the Western District of Michigan. Attorney General Nessel then filed the Motion to Remand, which was granted, sending the lawsuit back to the Ingham County Circuit Court.

The temporary restraining order temporarily halts Kalshi from engaging in or advertising its internet sports betting operation in Michigan while the lawsuit continues through the court system.