A Michigan judge has ruled that Kalshi cannot move forward with event contracts.

A Michigan judge has ruled in favor of the state's Attorney General, Dana Nessel, in a lawsuit against Kalshi, a prediction market platform that allows trades instead of bets on different world and sports outcomes. Nessel is not the only Attorney General to challenge the platform.

County Circuit Judge Rosemary Aquilina has temporarily blocked Kalshi from operating in the Great Lakes State, delivering an early victory to Nessel, who sued the company in March. Nessel argued that prediction markets circumvent Michigan's specific laws on sports betting and gambling. Starting Monday, June 29, Kalshi must halt all new trades on its platform while the legal proceedings are underway. This decision follows Kalshi’s unsuccessful attempt to move the case to federal court, where US District Judge Paul Maloney determined on June 25 that federal law does not override Michigan’s gambling regulations. The Commodity Futures and Trading Commission (CFTC), which oversees prediction market platforms, has contested similar jurisdictional claims, suggesting that federal law should take precedence—a view contrary to Maloney's ruling. Judge Aquilina noted in her decision that Michigan and its most vulnerable citizens are suffering and will continue to suffer immediate and irreparable harm without intervention to stop Kalshi’s sports betting operations, which she described as disguised investment opportunities. Kalshi has complied with the order but remains resolute in its legal battle against the state. The platform asserts it does not offer sports betting but rather allows users to trade commodities. Elisabeth Diana, Kalshi’s Head of Communications, told the Free Press that they strongly disagree with the state's decision and are prepared to fight in court, refusing to be intimidated by those more interested in maintaining monopolies than protecting consumers. Meanwhile, they are implementing necessary restrictions.

Naturally, the decision has been well-received by Nessel, who believes it is the right move for addressing how these companies operate. We remain committed to ensuring a fair playing field for all gambling platforms in Michigan, and we will not allow companies to dodge accountability or take advantage of consumers under the guise of a prediction market, stated the attorney general's office. Kalshi and the AG’s office will continue to debate the local interpretation of the product, leaving the courts to decide whether the platform can continue in its current form. So far, Nessel’s efforts seem to be succeeding. Meanwhile, Minnesota has completely banned prediction markets.