LANSING, Mich. (Michigan News Source) – Michigan Democratic Attorney General Dana Nessel has scored another court victory against prediction-market company Kalshi, securing an order that keeps the company’s sports wagering contracts blocked in Michigan.

$500,000-a-day incentive to behave

Nessel announced in a recent press release that an Ingham County judge issued a preliminary injunction requiring Kalshi to maintain geofencing that blocks people in Michigan from accessing its sports-related contracts. Failure to comply with that geofencing requirement could get expensive quickly: the court set a whopping $500,000-per-day fine for each day Kalshi does not follow it.

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Kalshi operates a federally regulated prediction market where users trade contracts based on whether particular events will happen. Michigan argues its sports contracts cross the line into wagering regulated by state law.

Nessel sued Kalshi in March, alleging the company essentially offers sports betting dressed up as “event contracts” without a license from the Michigan Gaming Control Board.

Kalshi’s court fight continues

Kalshi tried moving the case to federal court, but it was sent back to Ingham County Circuit Court. The preliminary injunction follows a temporary restraining order Nessel secured in June. The underlying lawsuit remains pending.