AI · CryptoSlate
Kalshi runs into $500,000 daily fines as Michigan forces sports event contracts offline
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A Michigan judge has placed prediction-market exchange Kalshi under a preliminary injunction that keeps its sports event contracts fenced off from people in the state until the court issues a final order.
Key facts
- The Michigan Gaming Control Board said that the June measure carried a $120,000 daily noncompliance penalty
- The Sept. 1 order bars Kalshi and people acting with it from offering or facilitating covered internet sports-betting contracts for anyone located in Michigan
- WILX reported on Sept. 2 that Kalshi had not released a statement about that week’s ruling
- The new order is the next procedural stage after a temporary restraining order whose initial stated term was 14 days
Summary
01 A Michigan injunction bars Kalshi’s sports event contracts in the state until a final court order. 02 Noncompliant geofencing can trigger a $500,000 daily penalty, while FCMs must receive notice. 03 Conflicting Third and Ninth Circuit rulings leave the federal preemption question unsettled. Kalshi calls the products federally regulated event contracts, while Michigan treats the covered sports products as internet sports betting subject to state licensing.