Michigan regulators have stepped up their challenge against prediction market operator Kalshi through a temporary court order halting its sports-event contracts in the state and a decision to withdraw from the National Council on Problem Gambling (NCPG) over its partnership with the company.
The actions reflect the Michigan Gaming Control Board’s (MGCB) position that Kalshi is offering unlicensed sports wagering while presenting those products as financial contracts rather than gambling. Kalshi maintains that its prediction markets are federally regulated investment products rather than gambling offerings.
The developments come as prediction markets continue to face legal disputes with state regulators.
Court Order Blocks Kalshi’s Michigan Operations
The Ingham County Circuit Court granted a temporary restraining order requested by the MGCB, immediately preventing Kalshi from offering internet sports betting to people located in Michigan.
The order, signed by Judge Rosemarie E. Aquilina, was obtained through the Michigan Attorney General’s Office. It remains in effect for 14 days and requires Kalshi to stop offering, advertising or facilitating internet sports betting in the state.
Kalshi must also implement state-compliant third-party geolocation technology to prevent wagers from Michigan residents. The order provides for penalties of $120,000 per day for noncompliance.
MGCB Executive Director Henry Williams said: “Kalshi is targeting Michigan’s most vulnerable residents with sports betting dressed up as investing — and without intervention, the harm will keep getting worse.
“Our licensed sportsbooks follow strict rules designed to protect consumers — verifying that bettors are at least 21 years old, offering responsible-gaming tools, and protecting patron funds. Kalshi has refused to play by the same rules, and our agency will continue to use every regulatory and legal tool available to make sure Michigan families, our schools, and our first responders are protected from this unchecked exploitation.”
The regulator said licensed sportsbooks must verify customers are at least 21 years old and provide responsible gambling safeguards, including self-exclusion programmes, deposit limits and access to treatment resources.
The MGCB also argued that unlicensed operators avoid licensing costs and taxes that support the School Aid Fund, the Compulsive Gaming Prevention Fund, the First Responder Presumed Coverage Fund, the Michigan Strategic Fund and public services in Detroit.
Regulator Leaves Responsible Gambling Organisation
Days after obtaining the restraining order, the MGCB announced it was ending its membership in the NCPG following the council’s membership and investment partnership with Kalshi.
In a letter to NCPG Executive Director Heather Maurer, Williams argued the partnership conflicts with the regulator’s mission.
“Kalshi was (and may still be) actively involved in offering unlicensed sports gambling in Michigan,” Williams wrote.
He also stated: “These efforts are part of Kalshi’s broader strategy to remake the gambling industry – by bulldozing countless regulations and the consumer-protection safeguards which Michigan and other states have enacted to protect their residents and uphold the integrity of sports betting.”
Williams further wrote: “NCPG’s partnership with Kalshi also creates substantial confusion by suggesting to the public that Kalshi is subject to the same consumer protections, licensing requirements, and regulatory oversight as licensed sports betting operators. It is not.”
The MGCB has ended its conference sponsorship and said staff will no longer participate in NCPG activities.
Source:
“Michigan Gaming Control Board reacts to temporary restraining order against KalshiEX, unlicensed sports betting operation targeting Michigan families”, michigan.gov, Jun 30, 2026
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