A Michigan court has slapped a preliminary injunction on Kalshi, forcing the platform to cut off access to sports event contracts for users in the state. The order requires Kalshi to use geolocation to enforce the block. If they don't comply, they're looking at a $500,000 fine for every day they let Michigan residents in. These restrictions stay in place until the court makes a final call on the case.

What the Court Wants

The main requirement: Kalshi must technically block Michigan users from accessing its sports markets. The court specifically calls for geographic filtering of user traffic. This preliminary ban stands until a final verdict, and if Kalshi slips up, it's an automatic $500,000 per day penalty.

Michigan's Take

Back in March, Michigan regulators sued Kalshi, arguing the platform is basically offering sports betting under the guise of event contracts—without the required license. The current ban is just a procedural move while the lawsuit plays out.

What Happens Next

Until the legal fight wraps up, Kalshi's sports markets are off-limits to anyone in Michigan. The court's final decision will determine how (or if) Kalshi can operate sports markets in the state going forward.