Is Kalshi legal in Michigan?

By Vardan KhachatryanLast updated: Litigation tracker

Not for sports. Kalshi is legal in Michigan as a CFTC-regulated exchange, but a state court order blocks its sports contracts. Judge Rosemarie Aquilina signed it on September 1, 2026, at the attorney general's request. Politics, economics, crypto and weather markets still trade. Each day Kalshi breaks the order can cost $500,000.

Kalshi in Michigan

Not available for sports contracts.

Sports contracts
Not available
Other contracts
Available
Regulator
CFTC: a designated contract market (DCM) and derivatives clearing organization
Rulings and actions in Michigan
1 on record, listed in the timeline
Court order
Preliminary injunction, signed September 1, 2026
Penalty for breaking it
$500,000 a day
Federal appeals court
Sixth Circuit: ruled against Kalshi on September 25, 2026
Last change
September 25, 2026

Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.

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Why Kalshi is legal in Michigan, but not for sports

Kalshi is legal in Michigan because it is a federally regulated exchange. The CFTC designated it a contract market in 2020.

That covers its markets on elections, the economy and the weather. Michigan's lawsuit leaves those alone.

Sports are different. Michigan says a contract on a Lions game is a wager, and wagers need a state license.

A state judge agreed, for now. Her order keeps Kalshi's sports contracts from anyone in Michigan while the case runs.

Then, on September 25, the federal appeals court over Michigan sided with the states too. Here is what each ruling means.

What you can trade on Kalshi from Michigan

Everything except sports. Politics, economics, crypto, culture and weather markets stay open. You must be 18 or over and pass Kalshi's ID checks.

Politics is the busiest local menu this fall. Michigan elects a governor and a US senator on November 3.

The Senate race between Mike Rogers and Abdul El-Sayed trades on Kalshi: see the live Michigan Senate odds.

Kalshi's governor market lists three names: Jocelyn Benson, John James and Mike Duggan, who is running as an independent.

Lions, Tigers, Pistons, Red Wings, Wolverines and Spartans markets are closed to you. The block covers Michigan residents and anyone physically in the state.

How Kalshi works for Michigan traders

Every Kalshi contract is a yes-or-no question. It pays $1 if the answer is yes and nothing if it is no.

The price is the market's odds. A contract at 60¢ means traders put the chance at about 60%.

Say the Yes side of a Michigan Senate contract costs 60¢. You buy 100 contracts for $60. Kalshi's standard fee is $1.68.

If Yes wins, you collect $100, a $38.32 profit. If it loses, you are out $61.68.

A Lions contract works the same way. You just cannot buy one from Michigan while the order stands.

You trade against other people, not the house. The fee is highest near 50¢ and shrinks toward either end. Our Kalshi fees guide has the schedule.

What Michigan has said about Kalshi

Michigan has said plenty, and in court. Attorney General Dana Nessel sued Kalshi on March 3, 2026, on behalf of the state and its Gaming Control Board.

“Corporations cannot circumvent state gaming laws,” Nessel said when she filed. The complaint calls Kalshi an unlicensed internet sports betting operation.

The Gaming Control Board had warned its own licensees first. In October 2025, it said helping offer sports event contracts could cost them their licenses.

Kalshi disagrees and says only federal law applies. “We won't be bullied by interests that care more about protecting their monopolies than their consumers,” it said in June.

Michigan's lawsuit against Kalshi, explained

The case is Nessel v. KalshiEX, No. 26-001087-CZ, in Ingham County Circuit Court. It rests on Michigan's Lawful Sports Betting Act.

Kalshi moved it to federal court, which sent it back in late June.

On June 29, Judge Rosemarie Aquilina granted a temporary restraining order. Kalshi then stopped Michigan users from opening new sports positions.

After an August 17 hearing, she signed a preliminary injunction on September 1. The attorney general announced it the next day.

The order is broad. Kalshi must geofence Michigan with a location provider the Gaming Control Board licenses. It also reaches ads aimed at Michigan, from push alerts to influencers.

Parlays, in-game and prop contracts are covered too. Each day of noncompliance can cost $500,000.

The judge pointed to age. Michigan sportsbooks must turn away anyone under 21, while Kalshi takes traders from 18.

She also found the state's schools, problem-gambling programs and tribes lose revenue. She called Kalshi a “sports betting operation masquerading as an investment opportunity.”

Kalshi also had to send the order to every broker selling its sports contracts. It lasts until a final judgment.

What could change Kalshi's status in Michigan

Three things could. The first is the state case itself. A final judgment, or a higher Michigan court, could end the injunction or make it permanent.

The second is the Sixth Circuit, the federal appeals court over Michigan. On September 25, 2026, it ruled against Kalshi in its Ohio and Tennessee cases.

It held Kalshi's sports contracts are not swaps, so state gaming law applies. Federal judges in Michigan must follow that ruling.

The same court now holds three Michigan appeals, from Robinhood, Polymarket US and Coinbase. All three press the argument it just rejected.

The third is the Supreme Court. New Jersey has asked it to settle the question, and Kalshi's reply is due November 9. Our litigation tracker follows each case.

Kalshi in Michigan: timeline

Every change to Kalshi's position in Michigan, newest first. Each entry links the ruling or report behind it.

The Sixth Circuit ruled against Kalshi in its Ohio and Tennessee cases, No. 26-3196. The ruling binds federal courts in Michigan. Source
Citing the Kalshi injunction, Michigan got Robinhood to agree in federal court to stop new sports contracts by September 9. Robinhood routes many of them to Kalshi. Source
The attorney general announced a preliminary injunction, signed September 1, keeping Kalshi's sports contracts out of Michigan. Breaking it can cost $500,000 a day. Source
An Ingham County judge temporarily barred Kalshi from offering or advertising sports contracts in Michigan. Kalshi said it was “implementing restrictions.” Source
Attorney General Dana Nessel sued Kalshi in Ingham County Circuit Court under the Lawful Sports Betting Act. Source
The Gaming Control Board warned its licensees that taking part in sports event contracts could jeopardize their licenses. Source

How Kalshi compares to sports betting in Michigan

Sports betting is legal in Michigan. Lawmakers passed the Lawful Sports Betting Act in December 2019, and online books launched in January 2021.

Each licensed sportsbook partners with one of the three Detroit casinos or one of 12 tribes. Twelve were live online at the end of 2025.

Those books pay an 8.4% state tax on online sports revenue and must turn away anyone under 21. Kalshi does neither, which is the heart of the case.

The product differs too. A sportsbook sets the odds and takes your wager. On Kalshi, another trader takes the other side, and prices move all game.

So for a Lions game, the legal route in Michigan is a state-licensed sportsbook, for now.

Other prediction market apps in Michigan

The order reaches beyond Kalshi's own app. Brokers such as Robinhood, Coinbase and Webull sell Kalshi's contracts, so its sports geofence follows them.

Robinhood also agreed to stop new sports contracts on every exchange it uses. Polymarket US lost its bid to block Michigan's enforcement and has appealed.

DraftKings and FanDuel run licensed sportsbooks here, so their prediction apps do not list sports in Michigan. For the full picture, see prediction markets in Michigan.

Every app we rank, in ranking order, and where it stands in Michigan.
AppStatus in MichiganMore
Gemini PredictionsAvailable, sports includedGemini Predictions review
Polymarket USContested for sports contracts, with no restriction in forceIs Polymarket legal in Michigan?
OGAvailable, but not for sports contractsOG review
Interactive BrokersAvailable; it lists no sports contracts anywhereInteractive Brokers review
RobinhoodNot available for sports contractsIs Robinhood legal in Michigan?
ProphetXAvailable, sports includedProphetX review
CoinbaseAvailable, but not for sports contractsCoinbase review
WebullAvailable, but not for sports contractsWebull review
NovigNot availableNovig review
DraftKings PredictionsAvailable, but not for sports contractsDraftKings Predictions review
Fanatics MarketsNot availableFanatics Markets review
FanDuel PredictsAvailable, but not for sports contractsFanDuel Predicts review
PrizePicksAvailable, but not for sports contractsPrizePicks review
Underdog PredictNot availableUnderdog Predict review

How to use Kalshi in Michigan

Sign up with your email, confirm your identity with a driver's license or passport, and fund the account.

Kalshi takes bank transfers, debit cards, Apple Pay, PayPal, Venmo, wires and crypto, among others. Withdrawals carry no Kalshi fee.

In Michigan, sports markets are blocked and everything else works as usual. The order requires a location check by a state-licensed provider, the kind sportsbooks use.

Before you fund it, read our Kalshi review for its fees, payouts and lawsuits. New to all this? Start with what prediction markets are.

Kalshi in Michigan: FAQ

Can I use Kalshi in Michigan?

Yes, for everything except sports. If you are 18 or over, you can trade politics, economics, crypto, culture and weather markets. A state court order blocks its sports contracts.

Why is Kalshi banned in Michigan?

It is not fully banned. Michigan's attorney general says its sports contracts are unlicensed sports betting under state law. A judge agreed for now and ordered them blocked until the case ends.

Can I trade sports on Kalshi in Michigan?

No. Kalshi has blocked new sports positions in Michigan since the June 29 restraining order. The September 1 injunction keeps that block in place, with fines of $500,000 a day.

Does the Michigan block apply if I am just visiting?

Yes. The order covers Michigan residents and anyone physically in the state. Kalshi must check location with a provider the Gaming Control Board licenses.

How old do you have to be to use Kalshi in Michigan?

18. Kalshi's minimum age is 18, and it checks your ID before you trade. Michigan sportsbooks require 21, a gap the judge cited in her order.

Is Kalshi legal in all 50 states?

Kalshi operates in every state, but not for everything. Court orders block its sports contracts in Michigan, Nevada and Washington. Other states are still in court.

Is sports betting legal in Michigan?

Yes. The Lawful Sports Betting Act passed in December 2019, and online sportsbooks launched in January 2021. You must be 21 and in Michigan to bet.

Do I pay tax on Kalshi profits in Michigan?

Yes. Profits are taxable income, and Michigan taxes income at a flat 4.25%. How the IRS treats event contracts is not settled, so ask a tax adviser.

Is this legal advice?

No. It summarizes public rulings and filings, each cited. For a decision that matters, ask a lawyer licensed in Michigan.

Sources

  1. Michigan Attorney General: AG Nessel secures second order halting unlawful Kalshi sports wagers (Sep 2, 2026)
  2. Ingham County Circuit Court: preliminary injunction in Nessel v. KalshiEX (signed Sep 1, 2026)
  3. Ingham County Circuit Court: temporary restraining order against KalshiEX (Jun 29, 2026)
  4. Sixth Circuit: KalshiEX LLC v. Schuler, Nos. 26-3196/5235 (Sep 25, 2026)
  5. W.D. Mich.: Robinhood Derivatives v. Nessel, stipulation and order (Sep 4, 2026)
  6. Supreme Court docket: Flaherty v. KalshiEX, No. 26-299
  7. CDC Gaming: the Michigan injunction and Robinhood's exit from sports
  8. Decrypt: what the Michigan injunction requires of Kalshi
  9. Spectrum News: Michigan judge temporarily blocks Kalshi's sports contracts
  10. CBS Detroit: Michigan attorney general sues Kalshi
  11. American Gaming Association: State of the States 2026, Michigan
  12. CFTC designates KalshiEX LLC as a contract market
  13. Kalshi fee schedule
  14. Tax Foundation: state income tax rates for 2026

18+. Event contracts can lose their entire value. Nothing here is financial or legal advice. Trading responsibly.