Is Kalshi legal in Michigan? The August 12 deadline that decides it
Michigan moved later than Nevada but hit harder. A June 29, 2026 TRO from the Ingham County Circuit Court barred Kalshi's sports event contracts statewide and attached a $120,000-per-day penalty. At a July 13 hearing Judge Rosemarie Aquilina extended the order and reset the clock: geofence Michigan by August 12, or pay $500,000 for every day of non-compliance from August 13.
The timeline
| Date | What happened |
|---|---|
| Mar 2026 | AG Dana Nessel sues Kalshi. |
| Jun 29, 2026 | Ingham County Circuit Court grants a temporary restraining order. $120,000/day for non-compliance. |
| Aug 12, 2026 | Geofencing deadline. $500,000 per day from Aug 13 if missed. |
What is actually prohibited
The TRO prohibits Kalshi from offering, advertising or facilitating internet sports betting to any person located in Michigan.
Two penalties, two triggers
| Trigger | Penalty |
|---|---|
| Offering sports betting in breach of the order | $120,000 per day |
| Failing to have the state geofenced by August 12, 2026 | $500,000 per day, from Aug 13 |
The federal regulator told Kalshi to ignore the order
Michigan is where the state-versus-federal conflict stopped being theoretical. In July 2026 the CFTC weighed in publicly on Kalshi’s side, with chairman Michael Selig stating that a state cannot compel a designated contract market to violate its federal obligations, and that CFTC rules bar registered exchanges from discriminating against customers based on which state they live in.
That leaves Kalshi genuinely squeezed: comply with Judge Aquilina and risk breaching the federal rules its whole legal theory depends on, or follow the CFTC and accrue $500,000 a day. It is the cleanest illustration yet of why this fight is heading to a higher court — and it is the same preemption question the Third Circuit answered in Kalshi’s favour in New Jersey, and that the Sixth Circuit heard argument on for Ohio and Tennessee on July 30, 2026.
Nevada arrived at the same August 12 date through a different route. We cover that in Is Kalshi legal in Nevada?, and the Massachusetts Supreme Judicial Court fight in Is Kalshi legal in Massachusetts?.
What changed since August
Michigan moved from a TRO to a full order and then watched the circuit above it rule its way. On September 1, 2026 Judge Rosemarie Aquilina of the Ingham County Circuit Court entered a preliminary injunction barring Kalshi from offering sports event contracts to anyone in Michigan, requiring it to maintain geofencing and carrying a $500,000-a-day penalty for violations (InGame, September 1). On September 9 Robinhood agreed by court-approved stipulation to stop new sports event contracts for Michigan customers (Michigan Gaming Control Board, September 9), and on October 7 Coinbase agreed to do the same and close open positions by October 10 (MGCB, October 7). On September 25 the Sixth Circuit, which binds federal courts in Michigan, held in Kalshi's Ohio and Tennessee cases that Kalshi had not shown its sports contracts are swaps and that the Commodity Exchange Act does not preempt state gambling law either way (Courthouse News, September 25); Kalshi petitioned for panel rehearing or rehearing en banc on October 9, citing the CFTC's swap-definition rules issued the same day (Straight to the Point, October 12). Michigan also signed the 39-state Supreme Court brief of October 7 in No. 26-299. As of October 14, 2026 the injunction stands and no further Michigan order has been reported.
FAQ
- Is Kalshi legal in Michigan?
- Not for sports event contracts, per the June 29, 2026 TRO.
Sources
Next: three injunctions, one lawsuit and a Chrome ban
