Latest

Checked Oct. 21, 2026

State v. operator

Nessel v. KalshiEX LLC

Ingham County Circuit Court, Michigan, 26-1087-CZ

Injunction granted

Back in state court after remand, Judge Rosemarie Aquilina entered a TRO on June 29, 2026 (later narrowed) and a preliminary injunction on Sept. 1, 2026 barring Kalshi's sports contracts and their marketing in Michigan. The Attorney General moved for civil contempt on Sept. 29, 2026; a show-cause hearing is set for Nov. 24, 2026. Kalshi's appeal of the remand order is held at the Sixth Circuit.

The question

Whether the operator's event contracts are unlicensed gambling under Michigan law, or whether federal commodities law preempts the state's claims.

Michigan's Attorney General alleges Kalshi operates as an unlicensed sports-betting operator under the Lawful Sports Betting Act and seeks a declaration and permanent injunction. Kalshi removed the case, but the federal court sent it back, and the state court has restrained Kalshi.

Open question

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 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. Attorney General moves to hold Kalshi in civil contempt, citing sports promotions sent to Michigan users after the injunction; show-cause hearing set for Nov. 24, 2026.

    Source: defirate.com

  2. Judge Rosemarie Aquilina grants a preliminary injunction requiring Kalshi to stop sports contracts in Michigan, geoblock the state through an MGCB-licensed provider, and give the order to FCMs; $500,000 per day for geolocation noncompliance.

    Source: sbcamericas.com

  3. Kalshi appeals the remand order (6th Cir. No. 26-1639).

    Source: dockets.justia.com

  4. On Kalshi's emergency motion, Judge Aquilina narrows the temporary order so Kalshi blocks Michigan account addresses instead of all in-state geolocations; the sports pause stays in place (reported July 14, 2026).

    Source: focusgn.com

  5. State court enters a 14-day TRO requiring Kalshi to geoblock Michigan users from sports contracts.

    Source: sbcamericas.com

  6. Judge Paul L. Maloney grants the remand motion in part and returns the case to Ingham County Circuit Court; judgment entered the same day.

    Source: dockets.justia.com

  7. Attorney General moves to remand.

    Source: dockets.justia.com

  8. Kalshi removes the case to the W.D. Mich. (No. 1:26-cv-00731).

    Source: dockets.justia.com

Sources

  1. Justia docket: Nessel v. KalshiEX, W.D. Mich. 1:26-cv-00731
  2. Bridge Michigan: Michigan sues Kalshi (2026-03-05)
  3. DeFi Rate prediction market lawsuit tracker (updated 2026-10-20)
  4. Vultax prediction market lawsuit tracker (updated 2026-10-19)
  5. SBC Americas: why the Michigan judge told Kalshi to shutter sports and geofence (2026-09-03)
  6. DeFi Rate: Michigan wants Kalshi held in contempt
  7. Focus Gaming News: Michigan court narrows Kalshi restrictions (2026-07-14)