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State v. operator

Nessel v. KalshiEX LLC

U.S. Court of Appeals for the Sixth Circuit, 26-1639

Pending

Briefing held in abeyance since Aug. 24, 2026 pending the Ohio/Tennessee appeals (Nos. 26-3196, 26-5235). Kalshi must file a status report within 21 days of judgment in those appeals; their panel decision issued Sept. 25, 2026 but a rehearing petition is pending. No later docket activity verified.

The question

Whether the district court erred in remanding Michigan's suit for lack of federal-question jurisdiction, no complete preemption, and no CFTC-related basis for federal-officer removal.

Kalshi is appealing the order returning Michigan's enforcement action to state court. The appeal was paused for the Sixth Circuit's Ohio and Tennessee decisions, which issued on Sept. 25, 2026.

Open questions

State court, MichiganOpen

Will a Michigan judge hold Kalshi in contempt?

Next: show-cause hearing Nov. 2433 days

Motion filed Sept. 29Nov. 24

Resolves Yes if the Ingham County court finds Kalshi in civil contempt of its Sept. 1 injunction, No if it declines.

Ingham County Circuit Court No. 26-1087-CZ. Source: DeFi Rate

Resolved

  1. Will a Sixth Circuit panel side with Kalshi against Ohio and Tennessee?

    The panel affirmed the denial of Kalshi's injunction in Ohio and vacated Kalshi's injunction in Tennessee and remanded. Kalshi has asked for rehearing. Sixth Circuit Nos. 26-3196 and 26-5235. Source: Opinion

    No
  2. Will a Michigan judge grant a preliminary injunction against Kalshi's sports contracts?

    Judge Aquilina's Sept. 1 order, following a June 29 temporary restraining order, requires Kalshi to stop sports contracts in Michigan and geoblock the state until a final order. Ingham County Circuit Court No. 26-1087-CZ. Source: Court order (PDF)

    Yes

Docket timeline

  1. Sixth Circuit decides the Ohio and Tennessee appeals.

    Source: law.justia.com

  2. Briefing held in abeyance pending Nos. 26-3196 and 26-5235.

    Source: dockets.justia.com

  3. Kalshi moves to stay the appeal (granted as abeyance on Aug. 24, 2026).

    Source: dockets.justia.com

  4. Appeal docketed.

    Source: dockets.justia.com

Sources

  1. Justia docket: Nessel v. KalshiEX, 6th Cir. 26-1639
  2. Justia docket: Nessel v. KalshiEX, W.D. Mich. 1:26-cv-00731
  3. Vultax prediction market lawsuit tracker (updated 2026-10-19)
  4. Justia: KalshiEX v. Schuler, No. 26-3196 (6th Cir. 2026-09-25)

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