Michigan court sidelines Kalshi sports markets
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Kalshi, the increasingly popular prediction market, has begun blocking Michigan users from making sports predictions amid an ongoing legal battle.
Why it matters: Prediction markets are booming, but so are the legal fights around them.
- The central question: Are they federally regulated financial products or a new form of gambling that states can police?
Catch up quick: Ingham County Circuit Court Judge Rosemarie Aquilina's June 29 order barred the New York-based company from offering sports predictions to Michigan users while a state lawsuit plays out.
- Attorney General Dana Nessel sued Kalshi in March, arguing the company is operating an unlicensed sports betting platform in Michigan through sports event contracts.
The latest: Michigan users began receiving an in-app notice saying they "are not currently allowed to open positions in Sports," and an email from Kalshi says sports-related markets are restricted in the state because of "a temporary court order."
- The email says Kalshi's other markets — including crypto, weather and world news — remain available in Michigan.
What they're saying: Kalshi disagrees with the court's decision and intends to continue fighting the state lawsuit, company spokesperson Elisabeth Diana said in a statement.
Catch up quick: Ingham County Circuit Court Judge Rosemarie Aquilina's June 29 order barred the New York-based company from offering sports event contracts to Michigan users while a state lawsuit plays out.
- Attorney General Dana Nessel sued Kalshi in March, arguing the company is operating an unlicensed sports betting platform in Michigan through the event contracts.
Zoom out: Michigan is one of several states challenging Kalshi's sports event contracts.
What's next: The temporary restraining order remains in effect while the litigation continues. A hearing is scheduled for July 13.