Michigan AG Accuses Kalshi of Defying Court Injunction with Targeted Advertising

Michigan Attorney General Dana Nessel has accused Kalshi of willfully violating a preliminary injunction by continuing to target advertisements at state residents. Nessel made the claim in an Ingham County Circuit Court filing that asks Judge Rosemarie Aquilina to hold the company in contempt. Aquilina has scheduled a show-cause hearing for Nov. 24.

The filing states that instead of complying, Kalshi “elected to thumb its nose at the Court.” It cites three Michigan residents who received Kalshi ads via email, social media, and YouTube after the Sept. 1, 2026 injunction. Two saw promotions for “markets you don’t want to miss.” The third received a targeted ad for “Kalshi: Trade Football and More” that invited users to download the app to bet on NFL games.

According to SBC Americas, the motion references Kalshi’s July statement that it had ceased advertising targeted to Michigan users. That statement came after a June temporary restraining order.

Alleged Violations of the September 1 Injunction

The preliminary injunction bars Kalshi from “engaging in any activity in connection with sports wagering in the State of Michigan, including advertising, promoting, marketing, or soliciting participation in any internet sports betting contract to persons located in Michigan or using a Michigan address” via websites, mobile apps, email, push notifications, social media, influencers, affiliates, or paid placements.

Nessel’s filing argues the ads represent “a willful disregard for this Court’s September 1, 2026, Order” and “repeatedly and expressly violated the terms” despite requirements to use geofencing. It asks the court to impose fines, require reimbursement of enforcement costs, and award attorney’s fees.

Context of Michigan’s Enforcement Against Prediction Markets

The state approved legislation in December 2019 that legalized online sports betting, iGaming, and poker. Regulators have since acted against prediction market operators viewed as operating outside that framework. Coinbase agreed to stop offering sports event contracts as of Oct. 10. Robinhood reached a similar deal in September.

Kalshi also agreed to stop offering such contracts in Michigan. The company faced potential fines of up to $500,000 per day if it did not geoblock users, a requirement it said would violate its obligations for uniform access under CFTC rules. The Nov. 24 hearing will address whether these advertising actions constitute contempt and warrant sanctions.

Reporting: SBC Americas

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