Michigan AG Nessel secures preliminary injunction against Kalshi sports contracts
Michigan Attorney General Nessel secured a preliminary injunction blocking Kalshi from offering sports event contracts in the state, acting on behalf of Michigan and its Gaming Control Board. The order was published September 2, 2026. The available source text does not specify the grounds for the injunction or the precise scope of restrictions imposed. The action continues state-level pressure on Kalshi's federally registered prediction market.
Kalshi must now geofence Michigan alongside Nevada, shrinking the territory where its CFTC registration protects contract validity. Traders hold positions whose legality shifts with state borders, not federal designation. Each state win emboldens the next attorney general to file cheap parallel actions.
Kalshi's legal spend compounds across multiple fronts while its national sports market fragments. Michigan follows Connecticut's suit, adding to the cascade of state losses that make Supreme Court intervention more urgent. New Jersey's pending petition offers the only path to a unified federal rule, but months of uncertainty remain while state bans accumulate and Kalshi's addressable market shrinks.