Michigan Court Orders Kalshi Sports Market Block
A $500K-per-day injunction escalates the state-vs-federal fight over prediction markets.
A Michigan court this week converted a temporary restraining order into a full preliminary injunction, requiring Kalshi to continue blocking residents from accessing its sports prediction markets — with violations carrying a $500,000-per-day fine.
Why It Matters
The injunction represents a significant escalation for Kalshi, which has argued federally regulated prediction markets fall outside state gambling jurisdiction. A $500,000 daily penalty transforms a procedural order into a serious financial threat, giving Michigan's regulators a credible enforcement lever. For the broader prediction market industry, the ruling signals that state-level pushback against federally licensed operators remains an active and potent risk — not a problem already resolved by the Commodity Futures Trading Commission's federal oversight framework. Operators and investors watching Kalshi's national expansion should treat this as a material compliance variable.
Context
The original temporary restraining order was issued in June 2026, according to The Block, after Michigan authorities moved to halt Kalshi's sports event contracts in the state. Kalshi holds CFTC designation as a designated contract market, a status it has used to argue state sports-betting laws do not apply to its products. Michigan disagrees, and the court has now sided with the state's position at the preliminary stage.
What's Next
Kalshi will likely challenge the injunction at the appellate level, where the federal-versus-state jurisdictional question could finally receive a definitive ruling. Until then, Michigan residents remain locked out of Kalshi's sports markets, and the daily fine structure means prolonged non-compliance is not a realistic option.
Gambling involves financial risk. Always check local regulations before participating in prediction markets or any wagering product.
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