Kalshi hit by Michigan court suspension and nationwide legal hearings on sports contracts

A Michigan state court has upheld an order that bars Kalshi from offering sports‑event contracts to users in the state. Judge Rosemarie Aquilina ruled the platform must keep its sports markets suspended while the state’s lawsuit proceeds, arguing the contracts function as illegal sports betting under Michigan law.

At the same time, Kalshi faces parallel federal and state proceedings. In Washington state, a King County Superior Court hearing on July 10 will consider a request for a preliminary injunction against Kalshi’s sports contracts. The company is also appealing to the Ninth Circuit, which will hear a separate case that day involving three California tribes challenging a prior dismissal of their claims. Additional brief‑submission deadlines loom in Connecticut and Tennessee, with oral arguments set for late July. North Carolina’s budget proposes a 6 % tax on prediction‑market fees, potentially adding another regulatory front.

The disputes come as World Cup betting volumes surge, with Kalshi’s tournament trading surpassing $1 billion, making it the most‑traded sports event on record.