Michigan Judge Bars Kalshi Sports Bets, Threatens $500K Daily Fine
A Michigan judge ordered Kalshi to stop offering sports wagers in the state and imposed a $500,000 daily penalty if it fails to geofence Michigan residents. The injunction says Kalshi’s sports contracts amount to unlicensed betting that causes immediate harm, especially to vulnerable residents. It bars Kalshi from taking deposits, allowing account creation or funding, or advertising to Michigan users, including through apps, push alerts, influencers, affiliates, and paid placements. It also covers products similar to sports betting, such as parlays, moneyline, in-game, and proposition bets. The court said Kalshi’s model bypasses Michigan’s age limits and consumer protections, threatens funding for schools and public safety, and sidesteps tribal sovereignty. The order requires third-party geolocation compliance and notice to futures commission merchants. The ruling follows a lawsuit by Attorney General Dana Nessel under Michigan’s sports betting law and remains in effect until final judgment.
