A court in Michigan has issued a temporary restraining order preventing KalshiEx LLC (Kalshi) from offering or promoting online sports betting within the state. This decision comes as a lawsuit initiated by Attorney General Dana Nessel progresses.
This state court ruling follows a recent decision by the U.S. District Court for the Western District of Michigan, which approved the Attorney General's request to send the case back to state court after Kalshi sought to escalate it to the federal level.
In her statement, Nessel emphasized that Michigan's gambling regulations are in place to protect consumers from unauthorized gambling activities and to ensure compliance with state laws by all operators.
“I commend the attorneys in my office for successfully keeping this case in state court and obtaining an order that safeguards residents while the litigation continues,” she remarked. “We are dedicated to maintaining fair competition among gambling platforms in Michigan and ensuring that no company can avoid responsibility or take advantage of consumers under the pretense of a prediction market.”
The lawsuit, which was filed by the Attorney General's office in March, claims that Kalshi breached Michigan's Lawful Sports Betting Act by permitting users to bet on sporting event outcomes via event contracts on its prediction market platform.
The complaint states that the platform allows Michigan residents to engage in sports betting, process transactions through financial channels, and partake in activities that the state considers unlicensed sports betting. The lawsuit asserts that Kalshi is operating in Michigan without the necessary license from the Michigan Gaming Control Board.
After the lawsuit was filed in state court, Kalshi attempted to transfer the case to federal court. However, the federal court granted the state's motion to remand, returning the case to the Ingham County Circuit Court.
The temporary restraining order prohibits Kalshi from running or marketing its online sports betting service in Michigan until further court proceedings clarify the case's outcome.