Michigan Attorney General Secures Injunction Barring Kalshi from Sports Contracts
TL;DR — Michigan AG Dana Nessel obtained a preliminary injunction barring Kalshi from offering sports contracts, with geofencing required and $500,000 daily fines for violations. The March lawsuit claims unlicensed gambling under the Lawful Sports Betting Act. The MGCB also cut ties with a problem gambling group after its $2M Kalshi partnership.
SCCG Take — The ruling reinforces state licensing authority over sports-related event contracts and tests Kalshi’s federal jurisdiction claim in ongoing state court proceedings.
Michigan Attorney General Dana Nessel has secured a preliminary injunction against Kalshi that bars the company from offering sports contracts in the state. The order requires Kalshi to maintain geofencing preventing Michigan residents and anyone within the state from accessing those contracts. Violations could result in a $500,000 daily fine.
“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,” said Nessel. “My office will continue to defend Michiganders and enforce our gaming laws, which ensure gambling revenue is regulated and distributed back into our communities.”
Nessel filed the lawsuit in March alleging Kalshi violated Michigan’s Lawful Sports Betting Act by offering sports betting through event contracts without approval from the Michigan Gaming Control Board. The Attorney General’s office alleges that the activity constitutes unlicensed gambling under Michigan law.
Court Rulings and Related Regulatory Steps
Kalshi sought to move the case from state court to the US District Court for the Western District of Michigan. Nessel filed a motion to remand, which was granted and returned the lawsuit to Ingham County Circuit Court. In June an Ingham County judge issued a temporary restraining order preventing Kalshi from offering sports-related contracts. The restriction lasted until mid-July.
The Michigan Gaming Control Board ended its membership in the National Council on Problem Gambling in July after the nonprofit accepted a $2 million partnership with Kalshi. In a letter to the council, MGCB Executive Director Henry Williams said the deal was inconsistent with Michigan’s efforts to curb unlicensed sports betting. Williams questioned Kalshi’s positioning of its contracts as “investments” instead of gambling products. As reported by Yogonet International, Kalshi has said it will contest the state’s case and maintains it is subject to exclusive federal jurisdiction.
The Jurisdiction Question in State Court
The preliminary injunction leaves Kalshi required to block Michigan access while the underlying claims proceed in Ingham County Circuit Court. The dispute centers on whether event contracts tied to sports outcomes qualify as regulated sports betting under state law or fall outside it. Regulators and operators will see whether the federal jurisdiction argument alters the licensing obligations the Michigan Gaming Control Board enforces.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Michigan just drew a hard line: sports-related event contracts are gambling unless you're licensed—Kalshi's federal defense didn't fly.
We've watched Kalshi test state lines for months. This injunction—and the MGCB cutting ties with NCPG over that $2M Kalshi deal—sends a message: regulators won't let event contracts slide as 'investments' when they look, smell, and pay like sports bets. Every state watching this precedent needs to know where the line is.
- Preliminary injunction bars Kalshi sports contracts in Michigan; geofencing required, $500K/day penalties for violations
- AG Nessel's suit claims unlicensed gambling; Kalshi's bid for federal jurisdiction was rejected, case back in state court
- MGCB ended NCPG membership after nonprofit took $2M Kalshi partnership, citing conflict with unlicensed betting enforcement
SCCG angle: SCCG works with regulators, licensed operators, and compliance teams across every US jurisdiction. If you're navigating the event-contract vs. sports-betting line—or competing against unlicensed entrants—we connect you to the legal, regulatory, and commercial partners who understand where each state draws that line and how to stay on the right side.
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