A Michigan court has issued a 14-day temporary restraining order against prediction market platform Kalshi, blocking it from offering sports-related event contracts to state residents until July 13. Ingham County Circuit Court Judge Rosemarie E. Aquilina granted the order on Monday, following a lawsuit filed by Attorney General Dana Nessel in March. The court also imposed a $120,000 daily fine for any day Kalshi fails to comply with geolocation requirements that would prevent Michigan users from accessing its sports markets.
The restraining order is the latest development in a broader clash between state and federal regulators over jurisdiction. More than a dozen U.S. states have taken enforcement action against platforms like Kalshi and Polymarket, arguing that sports event contracts amount to unlicensed gambling. The Commodity Futures Trading Commission (CFTC) has countered that these federally regulated products fall under its exclusive authority. The Western District of Michigan recently granted Nessel’s motion to remand the case to state court after Kalshi attempted to move it to the federal level.
Despite legal challenges, activity on prediction platforms has surged during the 2026 FIFA World Cup. Kalshi’s monthly volume topped $30 billion in June, a 79% increase from May, while Polymarket saw a record daily taker volume of $713 million on June 20. Bernstein analysts estimate the World Cup could drive $5–10 billion in new consumer prediction market volume.
