Michigan Attorney General granted temporary restraining order against Kalshi

The Ingham County Circuit Court has granted Michigan Attorney General Dana Nessel a temporary restraining order against Kalshi, following her original enforcement action filed against the operator on March 4. 

Kalshi unsuccessfully attempted to move the case to the federal level after Nessel’s motion to remand the lawsuit to state court was approved by the US District Court for the Western District of Michigan on June 25. 

Kalshi’s efforts to operator and promote prediction market offerings have now been halted in Michigan, although the case is set to continue through the court system. 

“Our gambling laws exist to protect Michiganders from unlicensed, predatory operations, and failing to comply with them carries serious legal consequences,” Nessel said. 

“I am proud of the attorneys in my office who not only kept this case in state court but also secured an order protecting residents as this litigation moves forward. We remain committed to enforcing a level playing field for all gambling platforms in Michigan and ensuring that companies cannot evade accountability or exploit consumers under the guise of a prediction market.”

The temporary restraining order also calls for Kalshi to implement geolocation services to ensure compliance with the enforcement action. 

According to Nessel, Kalshi violated Michigan’s Lawful Sports Betting Act by offering an online operation which enables residents to engage in sports betting under the guise of trading event contracts.

The Attorney General believes that Kalshi conducts such business in Michigan without the licensing approval of the Michigan Gaming Control Board and therefore in violation of the Lawful Sports Betting Act.

At the time of Nessel’s original enforcement action, Polymarket filed a preemptive lawsuit against the state regulator and cited concerns of an “immediate and concrete” threat. 

On June 17, however, Michigan District Court Judge Paul Maloney denied Polymarket’s motion for a temporary injunction against Nessel, ruling the operator’s prediction market products fail to fall under the statutory definition of “swaps.”