As of late 2026, the answer is no. Kalshi cannot legally offer its sports event contracts to anyone located in Michigan, after a state court barred the platform and ordered it to block Michigan users or face fines of $500,000 a day. The prediction market’s sports products are, for now, off-limits across the state, and the order stays in force until a final judgment is entered.

What makes Michigan unusual is that a federal agency pushed back against that state order, creating a rare tug-of-war between state and federal authority. Smart Bet Insider tracks prediction markets and the legal fights reshaping them state by state. The sections below explain why Michigan sued, what the injunction blocked, the federal clash that followed, where the case fits nationally, and what it all means for bettors.

What Kalshi Is and Why Michigan Sued

Kalshi is a federally regulated event-contract exchange, overseen by the Commodity Futures Trading Commission, that lets users trade yes-or-no contracts on real-world outcomes, including the results of sporting events. Its position is that these contracts are federally regulated financial products beyond the reach of state gaming law, a claim the CFTC has broadly supported in filings across the country.

Michigan doesn’t agree. In March 2026, Attorney General Dana Nessel sued Kalshi on behalf of the Michigan Gaming Control Board, arguing that its sports event contracts amount to unlicensed internet sports betting under the state’s Lawful Sports Betting Act. Regulators stressed that Kalshi offered none of the age verification, deposit limits, or responsible-gaming tools that licensed operators must provide, and warned that younger residents could access it.

The Injunction

The state moved quickly. On June 30, 2026, Ingham County Circuit Judge Rosemarie Aquilina granted a temporary restraining order barring Kalshi from offering sports wagers to Michigan residents, backed by a $120,000 daily fine, while also declining Kalshi’s own request for an injunction to shield its operations. Michigan became the second state, after Nevada, to secure a court-ordered halt against Kalshi’s contracts.

That restraint hardened in September, when the same court issued a preliminary injunction carrying a $500,000 per day penalty for noncompliance. The order bars Kalshi from offering, settling, advertising, or accepting deposits on sports contracts, along with products deemed functionally similar to betting such as parlays and moneyline wagers, for anyone in Michigan. It requires geofencing through an MGCB-licensed provider and orders Kalshi to notify the brokers that carry its contracts within three business days.

The CFTC Clash

The federal wrinkle arrived in mid-July, when the CFTC intervened on the opposite side of the fight. As the state court pushed Kalshi to cancel open Michigan trades and refund customers, CFTC Commissioner Michael Selig issued an emergency order directing the company to keep those executed contracts open and settle them through normal market practice, citing the need to protect market integrity.

That left Kalshi caught between two authorities, facing state contempt if it obeyed the CFTC and a federal conflict if it obeyed the state court. The company’s own lawyers described it as an impossible position, and the standoff crystallized the central question running through every Kalshi case: whether a federally approved exchange can offer sports contracts that a state treats as illegal gambling.

Where Michigan Fits in the National Fight

Michigan’s dispute is one front in a broader war whose outcome remains genuinely uncertain. In April 2026, the Third Circuit sided with Kalshi against New Jersey, holding that its sports contracts are federally regulated swaps that preempt state gaming law, the first federal appellate ruling to reach that question.

Months later, the Ninth Circuit reached the opposite conclusion in Nevada’s favor, ruling that the contracts are gambling in substance and not shielded from state regulation. That direct split between two federal appeals courts is the kind of conflict the Supreme Court often steps in to resolve, and its eventual answer could reshape Michigan’s case no matter what the state court decides in the meantime.

What It Means for Michigan Bettors

For residents, the practical effect is simple: Kalshi’s sports markets are unavailable in Michigan, and attempting to reach them through the platform will run into the geofencing the court ordered. The block covers the sports-related contracts specifically, rather than Kalshi’s wider catalog of non-sports event markets.

Michigan is far from a betting desert, though, since the state legalized online sports betting and casino gaming in 2021 and runs a licensed, regulated market through the MGCB. Bettors who want legal sports action have numerous state-licensed sportsbooks that carry the consumer protections, age checks, and responsible-gaming tools the court faulted Kalshi for lacking.

Where Things Stand

For now, the picture in Michigan is clear even if the law is not settled: Kalshi’s sports event contracts are blocked, the platform must geofence Michigan users, and steep daily fines back up the order until a final judgment. The CFTC clash and the national circuit split hang over the case without changing today’s reality on the ground.

Smart Bet Insider tracks prediction markets and the legal battles shaping their future in Michigan and beyond. Check the coverage before assuming today’s rules will hold, because this area of law is moving quickly and a higher court could still change it. None of this is legal advice, and anyone with a specific question should consult an attorney licensed in Michigan.

Gambling can be a sensitive subject, and if it is becoming a problem for you or someone you know, please reach out to support resources.

Frequently Asked Questions

Is Kalshi legal in Michigan right now?

No. As of late 2026, a state court injunction bars Kalshi from offering sports event contracts to anyone located in Michigan. The company must use geolocation to block Michigan users or face a $500,000 daily fine. The order remains in effect until a final judgment in the case.

Why did Michigan take action against Kalshi?

Attorney General Dana Nessel, acting for the Michigan Gaming Control Board, sued Kalshi in March 2026, arguing its sports contracts are unlicensed internet sports betting under the state’s Lawful Sports Betting Act. Regulators also noted that Kalshi lacked the age verification and responsible-gaming safeguards required of licensed operators. Kalshi maintains the contracts are federally regulated products.

What did the Michigan injunction block?

The preliminary injunction bars Kalshi from offering, listing, settling, advertising, or taking deposits on sports contracts for anyone in Michigan, including products functionally similar to betting such as parlays, moneyline, and prop wagers. It requires geofencing through an MGCB-licensed provider. Noncompliance carries a fine of $500,000 per day.

Why did the CFTC get involved?

The federal CFTC issued an emergency order directing Kalshi to keep its already-executed Michigan trades open, rather than cancel and refund them as the state court had ordered. The agency said unwinding completed transactions would threaten market integrity. The move placed Kalshi between conflicting state and federal directives.

Can Michigan bettors still bet legally?

Yes. Michigan legalized online sports betting and casino gaming in 2021 and runs a regulated market through the Michigan Gaming Control Board. Numerous state-licensed sportsbooks operate legally and offer the consumer protections Kalshi was found to lack. Only Kalshi’s sports contracts are affected by the injunction.