7 Jul 2026
Michigan Court Blocks Kalshi Sports Contracts With Temporary Restraining Order
Attorneys representing Michigan Attorney General Dana Nessel secured a temporary restraining order from a state court judge that prevents prediction market platform Kalshi from offering contracts tied to sports events within the state, and the ruling requires Kalshi to implement third-party geolocation technology to exclude Michigan residents while litigation proceeds. The order also bars the company from advertising its services or accepting new registrations from the state, with potential daily fines reaching $120,000 for any violations during the enforcement period.
Details of the Court Order
The temporary restraining order emerged after Nessel's office filed the request, and the judge determined that immediate action was necessary to halt Kalshi's sports-related offerings until a full hearing occurs, yet the decision leaves room for the platform to continue non-sports contracts as long as they comply with the geographic restrictions. Kalshi must now rely on approved third-party services to verify user locations, and failure to maintain these blocks could trigger accumulating penalties that escalate quickly under the court's terms.
Compliance Requirements for Kalshi
Company officials at Kalshi face strict mandates to integrate geolocation tools that prevent access by Michigan users, and the order explicitly prohibits any promotional activities directed toward the state along with new account creation for residents, while existing users must be restricted from placing sports event contracts. This setup creates a layered enforcement mechanism that ties daily compliance checks to the potential fine structure, and observers tracking similar cases note that such orders often set the stage for broader settlement discussions or extended preliminary injunction proceedings.
Context of State Actions on Prediction Markets
This development follows a series of earlier interventions by Michigan regulators against prediction market operators, and those prior steps established a pattern of scrutiny over event contracts that involve sports outcomes or other regulated activities. The current order builds directly on that foundation by extending restrictions specifically to Kalshi, whereas previous actions targeted different platforms or broader categories of offerings without the same emphasis on geolocation mandates and advertising prohibitions.
According to the reporting from BJ21 News Service on its Current Blackjack News site, the case remains active with litigation expected to continue through additional hearings, and the temporary nature of the restraining order means Kalshi retains the ability to challenge the measures in subsequent proceedings. The platform must navigate these requirements while maintaining operations elsewhere, which highlights how state-level decisions can create patchwork compliance landscapes across different jurisdictions.
Enforcement Mechanisms and Penalties
Potential daily fines of up to $120,000 provide a significant deterrent against non-compliance, and the order ties these penalties to specific violations such as allowing Michigan residents to access sports contracts or engaging in prohibited advertising. Court documents outline that third-party geolocation providers must meet certain standards to satisfy the ruling, and Kalshi bears responsibility for ensuring ongoing accuracy in blocking efforts throughout the litigation period.
Impact on Platform Operations
Kalshi now operates under constraints that limit its market reach in Michigan, and the prohibition on new registrations prevents expansion among state residents even as the company addresses the geographic controls. Existing users encounter restricted functionality for sports-related contracts, which forces adjustments in how the platform structures its offerings during this interim phase before any final resolution.
Next Steps in the Litigation
The case moves forward with scheduled proceedings that will examine the underlying claims from Nessel's office, and Kalshi has the opportunity to present arguments against extending the temporary measures into a longer-term injunction. Legal teams on both sides prepare for these stages, while the current order maintains the status quo by keeping sports event contracts unavailable to Michigan users until further court direction emerges.
Conclusion
The temporary restraining order represents one chapter in Michigan's ongoing oversight of prediction markets, adn it imposes immediate operational changes on Kalshi along with clear financial consequences for any lapses in compliance. As litigation advances, the requirements for geolocation, advertising limits, and registration halts remain in effect, shaping how the platform interacts with the state until a more permanent outcome takes shape.