Michigan Extends Kalshi Sports Event Contract Ban

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed Jul 15, 2026, 10:00 am ET

Read Time: 4 minutes

Michigan Extends Kalshi Sports Event Contract Ban

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A Michigan court has strengthened its temporary restraining order against Kalshi, preventing the prediction market operator from offering sports event contracts to users in the state. 

The revised order gives Kalshi until August 12 to fully implement geofencing technology that blocks Michigan residents from accessing its sports event contracts.

The updated ruling also raises the stakes for noncompliance. Beginning August 13, Kalshi could face $500,000 in daily fines if it fails to meet the geofencing deadline without obtaining additional court relief. 

The revised enforcement framework replaces the earlier order, which imposed $120,000 daily fines for violating the court's directive.

The latest decision marks another escalation in the growing conflict between state regulators and prediction market operators. Michigan officials continue to argue that Kalshi's sports event contracts fall under state gaming laws. 

Meanwhile, the company maintains that federal commodities regulations govern its markets.

Why Michigan Extended Its TRO Against Kalshi

Judge Rosemarie Aquilina extended the temporary restraining order after expressing skepticism over Kalshi's argument that its sports event contracts qualify as federally regulated commodities rather than gambling products.

During the hearing, Aquilina challenged the company's legal position, stating:

"You aren't really talking about commodities, interest rates, things like that, but gambling, which has traditionally been denied by the states. What you're doing is defining it in a way that works for you, but not for Michigan."

Michigan Attorney General Dana Nessel and the Michigan Gaming Control Board argue that Kalshi operates outside the state's licensed sports betting framework. 

According to the state, companies offering sports wagering must comply with licensing rules, consumer protections, responsible gambling measures, and tax obligations.

State officials contend that allowing Kalshi to continue operating would undermine the regulated Michigan gambling market and create an uneven playing field for licensed operators, including US online sportsbooks that already comply with state law.

How the Michigan Court Reached Its Latest Ruling

The court's revised order followed several weeks of legal developments between Michigan and Kalshi.

On June 29, Judge Aquilina initially ordered Kalshi to stop offering sports event contracts in Michigan. The order threatened the company with $120,000 in daily fines if it failed to comply.

Kalshi later secured a temporary emergency pause while challenging the ruling. The company argued that implementing advanced geofencing technology required additional time because of its technical complexity.

Kalshi also claimed that the state's restrictions conflicted with federal commodities law, which it believes grants the Commodity Futures Trading Commission exclusive authority over its event contracts.

Those arguments failed to persuade the court during a July hearing. Judge Aquilina lifted the temporary pause and issued a revised order with a stricter compliance deadline. 

The new ruling requires Kalshi to complete statewide geofencing by August 12. Failing to do so will result in substantially larger financial penalties beginning the following day.

Geofencing Dispute Reflects a Broader National Battle

The geofencing dispute extends beyond Michigan and reflects a wider legal battle over prediction markets across the United States.

Michigan's revised order focuses on preventing residents from accessing Kalshi's sports contracts while the broader legal questions remain unresolved. 

Rather than immediately deciding whether the contracts fall under state gambling laws or federal commodities regulations, the court prioritized restricting access during ongoing litigation.

The dispute mirrors actions in several other states, where regulators argue that sports event contracts closely resemble traditional sports betting. This include states such as Nevada.

These states argue prediction markets must follow the same licensing, taxation, and responsible gambling rules as US online sportsbooks.

Kalshi continues to argue that its contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission. The company maintains that federal oversight preempts conflicting state restrictions.

As more states challenge prediction markets, geofencing has become a central issue in ongoing litigation.

Courts increasingly view location-based restrictions as an interim solution. However, larger questions surrounding federal and state authority move through the legal system.

Michigan's tougher order signals that state courts remain willing to enforce local gambling laws aggressively.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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