Michigan Attorney General Dana Nessel has filed a lawsuit against prediction market platform Kalshi, accusing the company of operating an unlicensed gambling service in the state.
The legal complaint, filed on March 3 in Ingham County Circuit Court, seeks a permanent injunction blocking the New York–based company from offering its platform to Michigan residents.
According to the filing, state officials argue that Kalshi’s “event contracts” function similarly to traditional betting wagers, even though the company describes its platform as a financial exchange.
On the platform, users purchase “Yes” or “No” contracts tied to real-world outcomes—such as political developments, economic indicators, or sports results—and receive a fixed payout if their prediction proves correct.
The lawsuit alleges this structure effectively mirrors sports betting and violates Michigan law because Kalshi has not obtained the licenses required to operate a wagering platform in the state.
Kalshi launched in 2021 as a regulated prediction market focused on economic data like inflation and unemployment, but it has since expanded to include a wide range of real-world outcomes.
Trending markets on the platform recently included questions about political leadership changes, election results, and the return timeline of Boston Celtics star Jayson Tatum following an Achilles injury. The expansion into sports-related events has helped push prediction markets closer to the mainstream sports conversation.
That visibility has also attracted high-profile figures from the sports world. LIV Golf star Bryson DeChambeau became the first professional athlete to sign an endorsement deal with Kalshi in January 2026, appearing in promotional campaigns and helping introduce event-based markets tied to his tournament performances.
The following month, Milwaukee Bucks superstar Giannis Antetokounmpo joined the company as a shareholder and marketing partner, marking the first time an active NBA player invested directly in the prediction market platform. Company policies prohibit Antetokounmpo from trading on NBA-related markets.
Michigan officials say the platform’s mechanics remain indistinguishable from sports wagering. The complaint argues that Kalshi’s contracts allow users to risk money on uncertain outcomes and receive predetermined payouts—meeting the legal definition of sports betting under state law.
“Entities like Kalshi continue to circumvent the gaming prohibitions imposed by state law and, in so doing, threaten the health, safety, and welfare of Michigan citizens,” the filing states.
The state also contends that Kalshi has not obtained approval from the Michigan Gaming Control Board, which regulates online sportsbooks and requires operators to hold licenses before accepting wagers from residents. Under Michigan law, only approved casinos and tribal operators are eligible for such licenses, a category the company does not fall under.
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