Kalshi faces $500,000 daily fines as Michigan forces sports event contracts offline

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. The ruling moves the dispute beyond a short-term restraint and into an open-ended compliance regime.Kalshi calls the products federally regulated event contracts, while Michigan treats the covered sports products as internet sports betting subject to state licensing. That classification fight explains why the order is more than routine sportsbook enforcement and why its reach is contested.What the Kalshi Michigan injunction requiresThe Sept. 1 order bars Kalshi and people acting with it from offering or facilitating covered internet sports-betting contracts for anyone located in Michigan. It also reaches deposits, advertising and solicitation, account access, and functionally similar sports-betting products in the state.Kalshi must use a third-party geolocation provider licensed by the Michigan Gaming Control Board and capable of meeting the regulator’s geofencing specifications. If the court finds Kalshi failed to comply with that requirement, the order directs the company to pay...