Prediction market platform Kalshi has been hit with a 14-day restraining order from a Michigan court, blocking residents from placing sports-related bets on the platform and escalating the legal tug-of-war between state and federal regulators.
The order, issued by Ingham County Circuit Court, threatens Kalshi with $120,000 in fines for each day it fails to implement geolocation restrictions preventing Michigan residents from accessing sports betting contracts. The order expires on July 13.
At the heart of the dispute is a fundamental question: who gets to regulate prediction markets? The CFTC argues it has exclusive authority over federally regulated event contracts, but multiple state regulators disagree. Michigan’s attorney general accused Kalshi of violating state gambling laws, and the court agreed that residents would face irreparable harm without the order.
Michigan is not alone. Nevada issued a temporary ban on Kalshi earlier this year, and Kentucky has sued five prediction market platforms. More than a dozen states have taken legal action against prediction market operators, creating a patchwork of conflicting rules that the industry will have to navigate for the foreseeable future.
