Michigan court orders Kalshi to stop sports wagers, sets $500,000 daily fine
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What happened
A Michigan state court ordered Kalshi to stop offering sports wagers in the state on 2 September, Gate News reported on 3 September 2026, citing Michigan Attorney General Dana Nessel. Ingham County Circuit Judge Rosemarie Aquilina issued the order. It barred Kalshi from accepting deposits, advertising or allowing account creation by Michigan residents, and it covered products functionally similar to sports betting, including parlays and proposition bets.
The order set a fine of $500,000 for each day Kalshi fails to geofence state residents. It required Kalshi to use a third-party geolocation provider licensed by the Michigan Gaming Control Board within three business days, and it remains in effect until final judgment. A later Michigan Gaming Control Board release, dated 7 October 2026, referred to a state-court preliminary injunction obtained against KalshiEX LLC. That release said the wider dispute over whether Michigan may regulate CFTC-registered event contracts as gambling was unresolved, with related appeals pending before the U.S. Court of Appeals for the Sixth Circuit.
Key points
- Ingham County Circuit Judge Rosemarie Aquilina ordered Kalshi to stop offering sports wagers in Michigan on 2 September 2026.1
- The fine is $500,000 for each day Kalshi fails to geofence state residents.1
- Kalshi must use a Gaming Control Board-licensed third-party geolocation provider within three business days.1
- The order remains in effect until final judgment; parlays and proposition bets are covered.1
- The Gaming Control Board later referred to a state-court preliminary injunction against KalshiEX LLC.2
Why it matters
The order stops Kalshi from offering sports wagers to Michigan residents until final judgment, per Gate News. The sources give no figure for the revenue involved.
The $500,000 daily fine for geofencing failures ties compliance to a direct cost, which is part of the regulatory exposure behind the business.
The Gaming Control Board said the dispute over regulating CFTC-registered event contracts as gambling was unresolved, with related appeals pending before the Sixth Circuit.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Series C | Jun 25, 2025 | $2.0B | $185M | Paradigm |
| Series D | Oct 10, 2025 | $5.0B | $300M | Andreessen Horowitz and Sequoia Capital |
| Series E | Dec 2, 2025 | $11B | $1.0B | Paradigm |
| Series F | May 7, 2026 | $22B | $1.0B | Coatue |
| Series F extension | May 20, 2026 | $22B | $200M | Unknown |
Updated
Fact-check
- Ingham County Circuit Judge Rosemarie Aquilina ordered Kalshi on 2 September 2026 to stop offering sports wagers in Michigan, as announced by Attorney General Dana Nessel.Confirmed by [1] Gate News (3 September 2026, citing the Michigan Attorney General): it names the judge and court and gives the 2 September order date.Verified
- The order bars Kalshi from accepting deposits, advertising or allowing account creation by Michigan residents, and covers parlays and proposition bets.Confirmed by [1] Gate News.Verified
- Kalshi faces a fine of $500,000 for each day it fails to geofence state residents.Confirmed by [1] Gate News.Verified
- Kalshi must use a Gaming Control Board-licensed third-party geolocation provider within three business days.Confirmed by [1] Gate News.Verified
- The order stays in effect until final judgment.Confirmed by [1] Gate News: the order 'remains in effect until final judgment'.Verified
- A Michigan Gaming Control Board release of 7 October 2026 referred to a state-court preliminary injunction against KalshiEX LLC and said the dispute over regulating CFTC-registered event contracts was unresolved, with appeals pending before the Sixth Circuit.Rests on the writer's read of [2] Michigan Gaming Control Board; the page returned 403 to the checker.Partly verified
Sources
- [1]Gate News (citing Michigan AG) (opens in a new tab)Michigan Judge Orders Kalshi to Stop Sports Betting, Imposes $500K Daily FineThe order covers products functionally similar to sports betting, including parlays and proposition bets.
- [2]Michigan Gaming Control Board (opens in a new tab)Coinbase agrees to halt sports-related event contracts in Michigan
