Michigan judge orders Kalshi to geofence state or pay $500K daily in sports contracts fight
A Michigan judge on Wednesday granted Attorney General Dana Nessel a preliminary injunction ordering Kalshi to geoblock the state or pay $500,000 per day for offering sports event contracts. Judge Rosemarie Aquilina cited seven reasons for the ruling, which converts a temporary restraining order first issued in June 2026. The injunction will remain in effect until a final order is issued. Kalshi disputes Michigan's authority and faces expanding state-level legal challenges as it defends its sports-linked event contracts.
Kalshi must now geofence Michigan alongside Nevada, shrinking the territory where its CFTC registration protects sports contracts. Each state loss emboldens more attorneys general to file parallel actions. Connecticut already sued. New Jersey petitioned the Supreme Court. Kalshi's legal spend compounds across multiple fronts while its national market fragments.
Traders hold positions whose legality shifts at state borders. A Supreme Court ruling could unify the rules, but that timeline stretches across months of uncertainty while state bans accumulate. Platforms with stronger state gambling licenses will absorb displaced volume until a federal resolution lands.