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- The Michigan Gaming Control Board today reacted to a temporary restraining order against Kalshi
- The board noted Kalshi’s sports event contracts target Michigan’s underage residents
- As part of the restraining order, Kalshi has agreed to geofence the state from its sports event contracts for two weeks
The Michigan Gaming Control Board today supported a decision from Judge Rosemarie E. Aquilina to grant a temporary restraining order against prediction market operator Kalshi, effectively barring its sports event contracts from the state for two weeks.
Aquilina, a Michigan Circuit Court judge for the 30th Judicial Circuit, yesterday granted Michigan Attorney General Dana Nessel’s request for a temporary restraining order and preliminary injunction against the company. The Michigan Gaming Control Board reported the temporary restraining order and preliminary injunction was secured on its behalf by the Michigan Attorney General’s Office.
“Kalshi is targeting Michigan’s most vulnerable residents with sports betting dressed up as investing — and without intervention, the harm will keep getting worse,” MGCB Executive Director Henry Williams said in a released statement. “Our licensed sportsbooks follow strict rules designed to protect consumers — verifying that bettors are at least 21 years old, offering responsible-gaming tools, and protecting patron funds. Kalshi has refused to play by the same rules, and our agency will continue to use every regulatory and legal tool available to make sure Michigan families, our schools, and our first responders are protected from this unchecked exploitation.”
Kalshi Will Temporarily Block Contracts
A spokesperson for Kalshi yesterday told Sports Betting Dime it will undertake geofencing measures to block sports event contracts in Michigan until the court ordered date of Monday, July 13. However, it will fight the decision in court.
“It’s no surprise that we disagree with the state’s decision and will fight it in court. Kalshi is subject to exclusive federal jurisdiction. We won’t be bullied by interests that care more about protecting their monopolies than their consumers. In the meantime, we’re implementing restrictions,” Elisabeth Diana, Head of Communications and spokesperson for Kalshi, said in a statement to Sports Betting Dime.
Aquilina ordered Kalshi use a third-party service to geofence Michigan from its sports event contracts. The order covers any and all Kalshi activity in Michigan in connection with sports betting. Failure to do so will result in a fine of $120,000 per day.
Nessel levied the lawsuit against Kalshi in the 30th Judicial Circuit Court in Ingham County this past March, seeking a permanent injunction to stop the company from offering sports event contracts in the Great Lakes State. It briefly moved to federal court before being sent back to the 30th Judicial Circuit Court in Ingham County.
Nessel and the Michigan Gaming Control Board claim Kalshi runs afoul of Michigan’s sports betting laws and sports event contracts are tantamount to unlicensed gambling.
Defending Problem Gamblers, Michigan Youth
The Michigan Gaming Control Board said its licensed sports betting operators must offer users mandated responsible-gambling protections, including self-exclusion programs, deposit and wagering limits, and direct links to addiction resources.
“The MGCB exists to ensure fair and honest gaming for the people of the state, and that mission does not stop at the border of a company’s marketing materials,” Williams said in a release. “Whether Kalshi calls its product an ‘event contract’ or a ‘trade,’ it’s a sports wager being offered to Michigan residents without a license and without the consumer protections our state requires.”
In her written decision, Aquilina noted that Michigan and “its most vulnerable citizens are suffering and will continue to suffer immediate and irreparable harm absent relief from being exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.”
According to Aquilina, by Kalshi offering these sports event contracts to Michigan residents who are as young as 18, the chance for “irreparable harm on Michigan’s youth would be profound.”
She also noted in her decision that Kalshi’s offerings elude user protection mechanisms found in Michigan’s sports betting regulations, offer the company an unfair advantage over other licensed sports betting operators who comply with Michigan’s regulatory structure, and negatively impacts Michigan tribes by depriving them of sports betting tax revenues.