The Circuit Court for the 30th Judicial Circuit in Ingham County has issued a preliminary injunction against the prediction market platform Kalshi. The ruling prohibits the company from offering event contracts to residents of Michigan. Violations of this court order could result in daily fines of up to $500 000.
Attorney General Dana Nessel initiated the lawsuit against Kalshi in March, alleging that the platform operates as an unlicensed sports betting service. This decision follows a temporary restraining order issued by a Michigan court in June. Previously, the US Commodity Futures Trading Commission directed Kalshi to ignore that June order, which the company described as an impossible position.
Simultaneously, officials in New Jersey have filed a petition for a writ of certiorari to the US Supreme Court regarding their own case against Kalshi. Legal experts suggest that the Supreme Court may eventually intervene to resolve jurisdictional disputes between federal regulators and state authorities over prediction markets.
The legal landscape for platforms like Kalshi and Polymarket remains complex as various states challenge their operations. In March, US Senators Adam Schiff and John Curtis proposed legislation that would grant individual states authority over event contracts that resemble sports betting or casino games, potentially limiting the scope of CFTC-registered platforms.