Michigan Stops Kalshi: Court Order Against Unlicensed Gambling

The Michigan Gaming Control Board (MGCB) has achieved a significant victory in its fight against unlicensed gambling operators. On July 2, 2026, the Ingham County Circuit Court issued a temporary restraining order against KalshiEX, LLC. This order immediately bars the prediction-market platform from offering unlicensed internet sports betting to Michigan residents. Judge Rosemarie E. Aquilina signed the order, following the arguments made by the Michigan Attorney General's Office, which serves as legal counsel to the MGCB in gaming enforcement matters.

This action is part of a broader strategy by the MGCB to hold offshore and unlicensed gambling operators accountable. Special emphasis is placed on protecting families, young people, and individuals struggling with problem gambling. Unregulated betting offers could pose risks to these groups.

Numbers and facts

The temporary restraining order (TRO) took immediate effect and lasts for 14 days. It prohibits Kalshi and anyone acting on its behalf from offering, advertising, or facilitating internet sports betting to any person located in Michigan. Kalshi must immediately implement state-compliant, third-party geolocation technology to ensure it does not accept wagers from Michigan residents, consistent with MGCB Technical Bulletin No. 2024-03. Non-compliance carries a daily fine of $120,000.

MGCB Executive Director Henry Williams made a strong statement:

“Kalshi is targeting Michigan's most vulnerable residents with sports betting dressed up as investing — and without intervention, the harm will keep getting worse.” - Henry Williams, MGCB Executive Director

He emphasized that licensed sportsbooks must adhere to strict rules, including age verification for individuals 21 and older, providing responsible gaming tools, and protecting patron funds. Kalshi, however, refused to play by these same rules.

Background

Kalshi argues that its products are not sports betting but financial instruments, subject to regulation by the U.S. Commodity Futures Trading Commission (CFTC). Earlier this month, a federal judge denied similar requests by Polymarket and Robinhood. They sought preliminary injunctions to block Michigan from enforcing its gambling laws against their sports-related prediction contracts. Judge Paul Maloney rejected their arguments, clarifying that such products are not exempt federal “swaps.” An operator cannot circumvent state consumer protection measures by simply rebranding a sports bet as an “event contract,” the court ruled.

Michigan's decision follows similar actions in other U.S. states. Nevada and Massachusetts had already taken measures against Kalshi. In April 2026, Judge Jason Woodbury of the First Judicial District Court in Carson City, Nevada, found that Kalshi's event contracts were “indistinguishable” from sports betting. He gave Kalshi until May 4 to implement geofencing technology, or face a long-term preliminary injunction.

The MGCB's actions have also impacted its membership in responsible gaming organizations. The MGCB withdrew its membership from the National Council on Problem Gambling (NCPG) due to a partnership between the NCPG and Kalshi. Henry Williams stated in a letter dated July 1 to NCPG Executive Director Heather Maurer that this partnership conflicted with the MGCB's mission. Characterizing sports betting as a means of financial gain was dangerous and increased the risk of problem gambling behavior. Furthermore, the partnership could mislead consumers by misrepresenting Kalshi's regulatory status.

Why it matters for German players

The situation in Michigan, Nevada, and Massachusetts once again highlights the importance of strict regulation of online gambling. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) protects players. The Joint Gambling Authority of the Federal States (GGL) licenses and supervises online gambling providers. Only providers on the GGL's so-called whitelist are legal. German players should only consider operators on this whitelist.

Unauthorized providers, often from Malta (MGA) or Curacao, offer similar “unregulated” products. However, these carry significant risks. Licensed German online casinos are subject to strict requirements, including a stake limit of 1 euro per spin and a monthly deposit limit of 1,000 euros. The cross-state gambling supervision system (LUGAS) centrally monitors these limits. Furthermore, comprehensive player protection measures, such as OASIS for self-exclusion, are in place. Unlicensed providers do not comply with these protective measures. They often offer higher stakes and no effective player protection mechanisms. This increases the risk of gambling addiction and severe financial losses.

What it means for GGL-licensed casinos

The actions in the USA underscore the necessity of adhering to strict licensing and regulatory frameworks. For GGL-licensed casinos in Germany, this confirms their business model. They offer a safe and transparent gaming experience, thereby protecting players from illegal offers. The enforcement of the GlüStV 2021 by the GGL is crucial to strengthen the legal market. At the same time, unregulated providers are being combated. The experiences from Michigan show that authorities worldwide face similar challenges. Player protection and securing state revenues are key objectives. Compliance with the rules creates trust and stability for the market.