A court in Michigan has put a preliminary injunction into effect that mandates Kalshi to keep blocking local residents from participating in event contracts related to sports.
Ingham County Circuit Court Judge Rosemarie E. Aquilina handed down the order on Tuesday, based on a Wednesday announcement by Michigan Attorney General Dana Nessel. The measure stays active until a definitive decision is reached in the litigation.
The injunction instructs the prediction markets network to utilize a third-party geolocation vendor authorized by the state gambling commission to satisfy geofencing requirements. Any breach would trigger a penalty of $500,000 for each day, as detailed in the court documents.
The state of Michigan initiated the legal action against Kalshi back in March, claiming the enterprise breached state sports gambling regulations by allowing residents to participate in sports wagering disguised as event contract trading.
This preliminary injunction transformed a prior temporary restraining order enacted in June. Kalshi previously sought to shift the litigation to federal jurisdiction, but the Western District of Michigan court approved the state’s request to send the case back down to state court.
“Kalshi long attempted to pass itself off as a legitimate gaming operation in our state, and I am relieved that this order further protects Michigan residents from its predatory, unlicensed practices,” Nessel stated in Wednesday’s release.
The Block has reached out to Kalshi for comment.
Nationwide fight
Kalshi continues to encounter regulatory resistance from authorities across multiple states, with upwards of twelve states launching enforcement proceedings or filing lawsuits against the prediction market provider.
In the previous week, Connecticut filed suit against Kalshi to bar the platform from providing sports-related contracts, intensifying its ongoing legal battle against the company.
Even with growing legal hurdles, Kalshi persists as the leading entity within the prediction market space. It posted $38.67 billion in trading activity during August, versus an aggregate $8.41 billion achieved by Polymarket and Polymarket US, according to The Block’s data dashboard.
Polymarket, Polymarket US and Kalshi Monthly Volume (The Block)
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Originally published at https://www.theblock.co/news/regulation/2026-09-03-michigan-court-orders-kalshi-sports-prediction-markets-413422.
