By Liz Nass
Gongwer News Service
Attorney General Dana Nessel filed a lawsuit this week against KalshiEX, LLC, a prediction market platform, that allows users to bet on pretty much anything, for skirting state gaming laws.
Kalshi, which describes itself as “a regulated exchange and prediction market where you can trade on the outcome of real-world events,” is under heat from Nessel for allegedly violating Michigan’s Lawful Sports Betting Act by unlawfully offering online sports wagers to Michigan residents.
The lawsuit, filed on behalf of the state of Michigan and the Michigan Gaming Control Board in Ingham County Circuit Court, alleges the platform allows residents to engage in unlicensed gambling under the guise of trading event contracts.
“Corporations cannot circumvent state gaming laws,” Nessel said in a statement. “My office will hold those who sidestep Michigan's consumer protections accountable and ensure that betting in our state remains lawful, fair and subject to the oversight our residents expect and deserve.”
The lawsuit seeks a permanent block on Kalshi from both operating sports betting and advertising their services in the state.
In Michigan, over $5 billion in online sports bets were placed in 2025, with another $130 million in bets made in person, the Citizens Research Council of Michigan said in a recent publication. The state collected over $27 million in taxes from online sports betting in 2025, with another $535,000 coming from in person sports bets, the CRC said.
Additionally, the CRC noted prediction markets like Kalshi can be used by those 18 and older, while licensed gambling and sports better are limited to those 21 and older.
Only state licensed casinos and federally authorized tribal casinos can apply for licenses to offer sports and online gaming, the complaint says.
“Kalshi is facilitating gambling in Michigan without all the required responsible gambling features mandated for licensed internet sports betting, and without any oversight by the MGCB as to whether its measures are effective, which is exposing residents of Michigan to gambling addiction with few safeguards,” the lawsuit says.
Gongwer News Service
Attorney General Dana Nessel filed a lawsuit this week against KalshiEX, LLC, a prediction market platform, that allows users to bet on pretty much anything, for skirting state gaming laws.
Kalshi, which describes itself as “a regulated exchange and prediction market where you can trade on the outcome of real-world events,” is under heat from Nessel for allegedly violating Michigan’s Lawful Sports Betting Act by unlawfully offering online sports wagers to Michigan residents.
The lawsuit, filed on behalf of the state of Michigan and the Michigan Gaming Control Board in Ingham County Circuit Court, alleges the platform allows residents to engage in unlicensed gambling under the guise of trading event contracts.
“Corporations cannot circumvent state gaming laws,” Nessel said in a statement. “My office will hold those who sidestep Michigan's consumer protections accountable and ensure that betting in our state remains lawful, fair and subject to the oversight our residents expect and deserve.”
The lawsuit seeks a permanent block on Kalshi from both operating sports betting and advertising their services in the state.
In Michigan, over $5 billion in online sports bets were placed in 2025, with another $130 million in bets made in person, the Citizens Research Council of Michigan said in a recent publication. The state collected over $27 million in taxes from online sports betting in 2025, with another $535,000 coming from in person sports bets, the CRC said.
Additionally, the CRC noted prediction markets like Kalshi can be used by those 18 and older, while licensed gambling and sports better are limited to those 21 and older.
Only state licensed casinos and federally authorized tribal casinos can apply for licenses to offer sports and online gaming, the complaint says.
“Kalshi is facilitating gambling in Michigan without all the required responsible gambling features mandated for licensed internet sports betting, and without any oversight by the MGCB as to whether its measures are effective, which is exposing residents of Michigan to gambling addiction with few safeguards,” the lawsuit says.
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