Michigan Judge Bars Kalshi Sports Bets, Threatens $500K Daily Fine

In brief

• Ingham County Circuit Judge Rosemarie Aquilina granted Michigan a preliminary injunction against Kalshi, signed Tuesday.
• Kalshi must run geolocation through a provider licensed by the Michigan Gaming Control Board or pay $500,000 for each day it does not.
• The order covers advertising, account funding and any product functionally similar to sports betting, and runs until final judgment.

A Michigan judge has ordered Kalshi to stop offering sports wagers in the state and to pay $500,000 for every day it fails to geofence Michigan residents, under an order signed Tuesday.

Ingham County Circuit Judge Rosemarie Aquilina wrote that Michigan and its most vulnerable residents face immediate and irreparable harm from Kalshi's "sports betting operation masquerading as an investment opportunity."

Michigan requires bettors to be 21, the order notes, while Kalshi takes them at 18. Aquilina also found the exchange sidesteps the patron protections in Michigan's regulatory framework, undercuts funding for schools, compulsive gambling prevention and first responders, and deprives Tribes of revenue while ignoring their sovereignty.

The injunction bars Kalshi from accepting deposits from anyone in Michigan, from advertising through apps, push notifications, influencers, affiliates or paid placements, and from allowing account creation or funding by state residents. Products "functionally similar" to sports betting are also caught, including parlays, moneyline, in-game and proposition bets.