Prediction market platform Kalshi is facing legal pressure on two fronts, with a Michigan judge issuing a temporary restraining order blocking the company from offering sports-related event contracts in the state while a separate Massachusetts case grows more expansive.
The Michigan order, issued Monday by the Ingham County Circuit Court, bars Kalshi from offering or advertising sports-related event contracts in the state until further order of the court. The action stems from a lawsuit brought by Michigan Attorney General Dana Nessel. In granting the order, the judge wrote that “Michigan and its most vulnerable citizens are suffering and will continue to suffer immediate and irreparable harm absent relief from being exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.”
In Massachusetts, Associate Justice Peter Krupp allowed state authorities on Tuesday to file a 71-page amended complaint in Suffolk County Superior Court, expanding on earlier allegations that Kalshi engaged in sports wagering in violation of state law. The amended filing introduced new claims that Kalshi “targets those under 21 years of age and does little to stop them from using its platform,” pointing to the company’s marketing on university campuses and ads featuring individuals who “appear to be younger than 21 years old.”
Massachusetts authorities also alleged that “Kalshi allows anyone who is at least 18 years old to create an account and wager on sports events by purchasing event contracts,” highlighting the gap between Kalshi’s age requirement and the 21-year minimum that applies to licensed sports betting in many states.
Kalshi and other prediction markets have pushed back against being classified as gambling operations, arguing that because they trade commodities, they fall under federal trading laws rather than state gaming regulations.
The Massachusetts case has been developing since Attorney General Andrea Joy Campbell filed suit against Kalshi in September 2025, alleging the company needed a license from the Massachusetts Gaming Commission to legally operate sports wagering. A judge issued a preliminary injunction in January barring Kalshi from offering sports event contracts while the case continued.
The development comes amid increasing scrutiny for predition markets. Last month, many gaming firms have reportedly called on the US Senate to add language “that explicitly prohibits event contracts tied to sports and casino-style gaming” in CLARITY Act.
