Kalshi hit with 14-day restraining order in Michigan, blocking sports prediction markets in state

Quick Take

• A Michigan judge issued a temporary restraining order against Kalshi, blocking the platform from offering sports-related event contracts in the state.
• Jurisdiction over prediction market platforms is an ongoing dispute between the CFTC and multiple state regulators.

The state of Michigan issued a temporary restraining order on Kalshi, barring the prediction market platform from offering sports-related event contracts in the U.S. state.

Ingham County Circuit Court Judge Rosemarie E. Aquilina issued the order on Monday, according to a statement from Attorney General Dana Nessel. The temporary restraining order lasts for 14 days, meaning that it will remain in effect until July 13.

The order also stipulates that the court would fine Kalshi $120,000 for each day it does not comply with the geo-fencing requirements it imposes.

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

The restraining order comes after the Western District of Michigan court granted Nessel's motion to remand the state's lawsuit against Kalshi back to the state court. Kalshi had attempted to remove the case to the federal level.

Michigan authorities filed a lawsuit against Kalshi in March, claiming that the federally regulated prediction market platform has violated the state's Lawful Sports Betting Act by offering sports event contracts. The authorities view the contracts as unlicensed gambling activity.

The Block has reached out to Kalshi for comment.

Federal v. State

The latest developments are part of a wider clash between state and federal regulators on jurisdiction over prediction markets.

Over a dozen U.S. states have issued enforcement orders against Kalshi, Polymarket US and other platforms under the same pretense — that they are offering unlicensed sports betting products. The platforms and the Commodity Futures Trading Commission argue that these products are cleared for nationwide availability, as federal jurisdiction preempts state law.

The agency, along with the prediction market companies, have actively fought back against state-level actions, suing different states to establish solid federal oversight of the industry.

Despite the legal disputes, Kalshi's monthly volume has been growing consistently from July 2025. Kalshi has attracted more than $30 billion in volume so far this month, which is a 79% increase from May, according to The Block's data dashboard.

Rival Polymarket and its U.S. platform have also seen growths in volume, likely attributable to the ongoing World Cup 2026. However, the gap between Kalshi and Polymarket has widened over the past few months.