Michigan‘s attorney general says Kalshi “elected to thumb its nose at the Court” by advertising in the state despite a prellminary injunction barring the company from doing so.
Michigan AG Dana Nessel made that claim in a recent Ingham County Circuit Court filing that asks Judge Rosemarie Aquilina to hold Kalshi in contempt for its alleged violations. Last week, Aquilina granted Nessel’s request for a show-cause hearing, which she scheduled for Nov. 24.
“Instead of complying with the terms of the preliminary injunction, Kalshi elected to thumb its nose at the Court,” the filing reads in part.
SBC Americas requested comment from Kalshi but did not receive a response as of publication.
How Kalshi allegedly violated Michigan order
Nessel cites three people who received Kalshi advertisements via email, social media and YouTube after the Sept. 1 injunction as evidence of Kalshi not complying. Two of the people viewed ads touting “markets you don’t want to miss” and the third saw a targeted ad reading “Kalshi: Trade Football and More” with an invitation to download its app to bet on NFL footabll.
The ex parte motion from Nessel also references a Kalshi statement in July that the company ceased advertising targeted to Michigan users. That places the statement weeks after Michigan officials secured a temporary restraining order to bar the company from promoting itself within the Great Lakes State.
“Despite the clear articulation of prohibited conduct regarding advertisements, Kalshi repeatedly and expressly violated the terms of this Court’s preliminary injunction by sending targeted email and social media advertisements to Michigan residents that should be blocked, via geofencing, from receiving such advertisements,” the filing reads.
“Kalshi’s actions represent a willful disregard for this Court’s September 1, 2026, Order.”
That injunction specifically prevents Kalshi from “engaging in any activity in connection with sports wagering in the State of Michigan, including ‘[a]dvertising, promoting, marketing, or soliciting participation in any internet sports betting contract to persons located in Michigan or using a Michigan address, including via websites, mobile apps, email, push notifications, social media, influencers, affiliates, or paid placements.'”
Why is Kalshi not legal in Michigan?
Michigan regulators and elected officials stand among the most aggressive in the country on gaming enforcement matters. The state approved a sweeping gaming legalization scheme in December 2019, setting up a comprehensive suite of offerings including online sports betting, iGaming and online poker.
Since then, they took action on fantasy sports, sweepstakes and prediction market operations they view as operating outside statute and rules. Their battles with Kalshi continue even as other prediction market operators stand down following court losses:
- Coinbase agreed to stop offering sports event contracts in Michigan as of Oct. 10. In exchange, Michigan will not pursue legal action against the operator for now.
- Robinhood reached a similar deal with state regulators in September that effectively pauses its operations in Michigan until the federal legal process plays out.
Kalshi also agreed to stop offering sports event contracts in Michigan following its court setbacks. The company faced fines of up to $500,000 per day if it did not geoblock users in the state from its platform, a step Kalshi said would violate its obligations to provide uniform access under the Commodity Futures Trading Commission rules it contends govern its operation.
In the contempt filing, the Michigan attorney general’s office asks that in addition to finding Kalshi to be in contempt of the Sept. 1 order, Aquilina also rules that the operator “be fined and required to reimburse the Department of Attorney General for any costs associated with enforcing the preliminary injunction order, as well as attorney’s fees for having to file this Motion.”
