A Michigan circuit court has extended restrictions that keep Kalshi from offering sports-related prediction contracts to people in the state, converting an earlier short-term freeze into a preliminary injunction that remains in place while the underlying lawsuit proceeds.
Ingham County Circuit Judge Rosemarie E. Aquilina signed the order on September 1, 2026, after a hearing in which both sides asked the court to decide the request for longer-term relief.
The ruling follows a temporary restraining order issued in late June at the request of Attorney General Dana Nessel.
That earlier order had already required the company to block Michigan users from sports event contracts and to rely on approved geolocation tools.
The new injunction keeps those barriers in force and raises the daily penalty for noncompliance to $500,000.Nessel’s office sued Kalshi in March, arguing that the platform’s sports event contracts function as unlicensed internet sports betting under Michigan’s Lawful Sports Betting Act.
State officials contend the products let residents wager on game outcomes without the licenses, age limits, consumer protections, and revenue-sharing rules that apply to licensed sportsbooks.
Kalshi, a CFTC-designated contract market based in New York, has maintained that its event contracts are federally regulated financial instruments and that state gambling statutes do not apply.
The injunction bars Kalshi and anyone acting with it from offering, listing, matching, executing, clearing, settling, or otherwise facilitating contracts that amount to internet sports betting for anyone located in Michigan.
It also restricts advertising directed at Michigan residents or addresses and requires continued use of a third-party geolocation service consistent with Michigan Gaming Control Board technical standards.
The court again pointed to the risk of immediate harm to residents, including younger users who can access Kalshi at 18 while licensed operators in the state generally require participants to be 21.
Kalshi has said it disagrees with the state’s legal theory and will keep litigating.
After the June order, the company implemented restrictions that prevented Michigan users from opening new sports positions while leaving other markets available.
The September order continues that approach rather than lifting the sports-market block.
The Michigan case is part of a broader clash between prediction-market platforms and state regulators.
Several states have argued that sports event contracts are gambling that they may police; platforms have argued that federal commodities law occupies the field.
Courts in different jurisdictions have reached mixed preliminary results, and related appeals are pending.
In Michigan, the state-court action remained in Ingham County after a federal judge remanded the case earlier this year.For now, the practical effect is that Kalshi must keep Michigan users away from its sports prediction markets or face substantial daily fines. The lawsuit itself continues, so the injunction is an interim measure, not a final judgment on whether the contracts violate state law.