Michigan’s Attorney General has filed a motion to hold prediction market operator Kalshi in contempt of court, alleging continued advertising in the state despite a September 1 preliminary injunction. A show-cause hearing has been scheduled for November 24 to address these allegations.
What Happened
Michigan Attorney General Dana Nessel filed a motion in Ingham County Circuit Court requesting Judge Rosemarie Aquilina to hold Kalshi in contempt. The filing asserts that Kalshi “elected to thumb its nose at the Court” by advertising in Michigan despite a preliminary injunction issued on September 1, which barred such activities (SBC Americas). Judge Aquilina has granted Nessel’s request for a show-cause hearing, set for November 24 (SBC Americas).
The attorney general’s ex parte motion references three individuals who reportedly received Kalshi advertisements via email, social media, and YouTube after the September 1 injunction. These ads included promotions such as “markets you don’t want to miss” and “Kalshi: Trade Football and More,” inviting users to download its app to engage with NFL football contracts. The filing states that Kalshi’s actions represent a “willful disregard” for the court’s order (SBC Americas).
Key Details
- The preliminary injunction, effective September 1, 2026, specifically prohibits Kalshi from “engaging in any activity in connection with sports wagering in the State of Michigan, including advertising, promoting, marketing, or soliciting participation in any internet sports betting contract to persons located in Michigan or using a Michigan address” (SBC Americas, Kalshi Preliminary Injunction Order Signed Sep 1 2026).
- In July, weeks after Michigan officials secured a temporary restraining order against the company, Kalshi reportedly stated it had ceased advertising targeted at Michigan users (SBC Americas).
- The contempt filing requests that Judge Aquilina fine Kalshi and require the company to reimburse the Department of Attorney General for enforcement costs and attorney’s fees associated with the motion (SBC Americas).
Why It Matters
Michigan regulators and elected officials have maintained an assertive stance on gaming enforcement, particularly regarding operations they deem outside state statutes and rules (SBC Americas). The state legalized online sports betting, iGaming, and online poker in December 2019, and has since taken action against fantasy sports, sweepstakes, and prediction market operators (SBC Americas).
This ongoing legal action against Kalshi follows similar developments with other prediction market operators. Coinbase reportedly agreed to stop offering sports event contracts in Michigan as of October 10, avoiding legal action from the state (SBC Americas). Robinhood reached a similar agreement in September, pausing its Michigan operations pending federal legal processes (SBC Americas).
Kalshi previously agreed to stop offering sports event contracts in Michigan after court setbacks, facing potential fines of up to $500,000 per day if it failed to geoblock users in the state. Kalshi had contended that geoblocking would violate its obligations to provide uniform access under Commodity Futures Trading Commission rules, which it asserts govern its operations (SBC Americas).
What’s Next
A show-cause hearing regarding the alleged contempt of court is scheduled for November 24 (SBC Americas).
Originally reported by SBC AmericasPublished
Sources & References
Primary source
- SBC Americassbcamericas.com
Additional references
- Michigan Kalshi Lawsuit Sports Contract Advertising Update – Poly Punterpolypunter.com
- Michigan Seeks Kalshi Contempt Over Sports Ads – DeFi Ratedefirate.com
- Kalshi Preliminary Injunction Order Signed Sep 1 2026michigan.gov
- Google now blocks prediction market ads in five states after adding Connecticutpredictreport.io