Is Kalshi legal?

Is Kalshi Legal in Michigan? Only Sports Is Off

By Owen Monagan ·

Since June 29, 2026, Michigan court orders have barred Kalshi from offering sports contracts to anyone located in Michigan, and a preliminary injunction signed September 1 keeps that in place until the case ends. The order names no other category, so Kalshi's election, economics and other markets aren't blocked. It doesn't mention withdrawals.

Can I still use Kalshi in Michigan?

Michigan · as of Sep 22, 2026

Kalshi is switched off in Michigan for 1 of 12 market categories, since Jun 29, 2026.

Sports contracts are switched off. The order names no other category.

Can I withdraw my money from Kalshi in Michigan?

How money on Kalshi is protected, wherever you are
  • Kalshi's clearinghouse, Kalshi Klear, has been registered with the CFTC as a derivatives clearing organization since August 2024. Primary source
  • Kalshi Klear's rules require money you deposit directly to be kept separate from its own money, and never mixed with it. Primary source: R7.7F, R7.9C
  • SIPC doesn't cover prediction-market accounts. It excludes commodity futures. Primary source
  • Kalshi Klear uses a bank sweep meant to add FDIC coverage, but Kalshi's own agreement says that coverage is not guaranteed to you. Primary source: §IV
  • Kalshi Klear's rules say withdrawals are processed by the next bank business day, and they make no exception for state restrictions. Primary source: R6.4C

What Michigan is asking the court to order against Kalshi

A state court finding that Kalshi likely breaks state gambling law isn't a ruling on how your trades are taxed. Federal tax treatment is a question under the Internal Revenue Code, and no court or IRS guidance has settled it for event contracts. How to file a Kalshi year.

Which Kalshi markets still work in Michigan?

Off: an order blocks it. Not blocked: no order names it.

Is Kalshi banned in Michigan? Every ruling, in order

Not outright: 1 of 12 Kalshi market categories are switched off in Michigan under a court order since Jun 29, 2026.

  1. 6 steps, Apr 29, 2025 to Jun 25, 2026
    1. · Michigan Gaming Control Board

      The MGCB wrote to the CFTC that buying a sporting event contract is "materially identical to an internet sports betting wager" under Michigan's Lawful Sports Betting Act, and that unlicensed operators offering them may be violating Michigan law.

      Primary source: p.1Primary source

      The letter does not name Kalshi. It is context, not an action against Kalshi. No MGCB cease-and-desist to Kalshi was found.

    2. · Ingham County Circuit Court (30th Circuit)

      AG Dana Nessel, for the People and the MGCB, sued KalshiEX in Ingham County Circuit Court (No. 26-1087-CZ) under the Lawful Sports Betting Act. The suit seeks a declaration that Kalshi's sports operation is a public nuisance and a permanent injunction.

      Primary source

      The federal remand opinion also says the case was filed March 3, 2026. The AG's press release announcing the suit is dated March 5, 2026: https://www.michigan.gov/ag/news/press-releases/2026/03/05/ag-nessel-files-lawsuit-against-kalshi

    3. · U.S. District Court, W.D. Mich.

      Robinhood Derivatives sued Nessel and the MGCB members in federal court (W.D. Mich. No. 1:26-cv-00730) to block Michigan enforcement against its sports event contracts. It moved for a preliminary injunction on March 9.

      Primary source

      This is Robinhood's case, not Kalshi's. It is included because it produced the Sept. 9 agreement, which covers contracts listed on Kalshi's exchange.

    4. · U.S. District Court, W.D. Mich.

      Kalshi removed the AG's lawsuit to federal court (W.D. Mich. No. 1:26-cv-731).

      Primary source

      The date is computed as two days after March 3, per the opinion's wording. The date of the AG's motion to remand (ECF No. 7) was not found.

    5. · U.S. District Court, W.D. Mich. (Maloney, J.)

      Judge Paul Maloney denied Robinhood's motion for a preliminary injunction against Michigan. Robinhood appealed to the Sixth Circuit the next day (No. 26-1542).

      Primary source

      The MGCB's June 30 release says Polymarket's request was denied too, 'earlier this month'. Polymarket's appeal is Sixth Circuit No. 26-1552, filed June 25.

    6. · U.S. District Court, W.D. Mich. (Maloney, J.)

      Judge Paul Maloney granted the AG's motion to remand and sent the Kalshi case back to Ingham County Circuit Court. He denied her request for fees.

      Primary source

      Some secondary reports give June 26, 2026. The order is dated and filed June 25.

  2. Turning point · · Ingham County Circuit Court (Aquilina, J.)

    Judge Rosemarie Aquilina granted an ex parte TRO barring Kalshi from offering, advertising or facilitating internet sports betting to anyone in Michigan. It required an MGCB-licensed third-party geolocation provider, set a fine of $120,000 per day of noncompliance, and ran 14 days, to July 13, 2026.

    Primary source: TRO signed June 29, 2026

    AG release: https://www.michigan.gov/ag/news/press-releases/2026/06/29/ag-nessel-secures-order-temporarily-halting-unlawful-kalshi-michigan-operations. MGCB release, 30 Jun: https://www.michigan.gov/mgcb/news/2026/06/30/mgcb-reacts-to-temporary-restraining-order-against-kalshiex. The order let Kalshi propose a provider licensed in another state. Kalshi initially blocked sports contracts for accounts with Michigan addresses (InGame, 9 Jul, secondary).

  3. Turning point · · Ingham County Circuit Court (Aquilina, J.)

    After Kalshi moved to dissolve or modify the TRO, the court amended it to let Kalshi use IP-based geolocation and residency restrictions instead of GPS geofencing, pending a hearing. The court also orally required Kalshi to close out certain trades by Michigan-located users.

    Primary source: CFTC, Jul 14, 2026

    Exact day unknown: InGame (9 Jul 2026) says 'last week', so June 29-July 3. The IP and residency amendment is secondary, from InGame quoting a Kalshi spokesperson: https://www.ingame.com/michigan-court-kalshi-delay-geofencing/. The trade close-out is primary, from the CFTC order.

  4. 3 steps, Jul 6, 2026 to Jul 13, 2026
    1. · Ingham County Circuit Court / CFTC

      The court told the parties in writing that the identified Michigan trades must be 'voided, cancelled and refunded'. The same day, Kalshi notified the CFTC of an imminent market emergency tied to complying with the TRO.

      Primary source

    2. · CFTC (filing by Kalshi)

      Kalshi filed an emergency rule with the CFTC to force-liquidate the open positions of the Michigan users the court identified, paying any shortfall below their cost from its own funds.

      Primary source

    3. · Ingham County Circuit Court (Aquilina, J.)

      At a hearing on the day the TRO was set to expire, Judge Aquilina extended it with no end date and gave Kalshi 30 days, to August 12, 2026, to geofence Michigan through a licensed provider. The fine for noncompliance rose from $120,000 to $500,000 a day.

      Secondary source

      The Sept. 1 PI order confirms the TRO was 'issued and extended' (primary) but gives no date. The Monday hearing and July 13 date come from InGame; CDC Gaming (14 Jul) agrees on the Aug. 12 deadline and $500k. The extension order itself was not retrieved.

  5. Turning point · · Commodity Futures Trading Commission

    The CFTC stayed Kalshi's emergency rule and, using emergency authority, ordered Kalshi to honor the open Michigan trades under its normal practices instead of cancelling them.

    Primary source: Commodity Futures Trading Commission, Jul 14, 2026

    Order: https://www.cftc.gov/filings/documents/2026/orgcftcorderstayingkalem61407.pdf. This changed what affected Michigan users would get: their positions were fulfilled, not voided. How the conflict with the state court's direction was resolved was not found.

  6. Turning point · · Ingham County Circuit Court

    Deadline for Kalshi to geofence Michigan through a licensed geolocation provider, with $500,000 a day for noncompliance.

    Secondary source: InGame, 13 Jul 2026 (secondary)

    Kalshi's July 23 Nevada stipulation (primary) confirms it was implementing GeoComply and reporting progress to Michigan: https://www.gaming.nv.gov/siteassets/content/about/press-release/2026.07.24-joint-stipulation.order-signed.pdf. The AG's Sept. 2 release says the PI 'requires Kalshi to maintain geofencing', which implies it was in place. No independent confirmation of the go-live date was found.

  7. 3 steps, Aug 17, 2026 to Sep 4, 2026
    1. · Ingham County Circuit Court (Aquilina, J.)

      At a hearing, both parties asked the court to rule on the preliminary injunction, and the court ruled on the record that one should issue.

      Primary source

      The order does not make clear whether the bench ruling came on Aug. 17 or at a later session.

    2. · Ingham County Circuit Court (Aquilina, J.)

      Judge Aquilina signed a preliminary injunction, in effect until final order. It bars Kalshi from offering, taking deposits for, advertising, or allowing accounts for internet sports betting and similar products to anyone in Michigan, requires an MGCB-licensed geolocation provider meeting Technical Bulletin 2024-03, sets a $500,000 fine for each day of geolocation noncompliance, and requires Kalshi to send the order to every FCM that offers its sports contracts within three business days.

      Primary source

      AG release, 2 Sep 2026: https://www.michigan.gov/ag/news/press-releases/2026/09/02/ag-nessel-secures-second-order-halting-unlawful-kalshi-sports-wagers-in-michigan. changesUsers is false because it continued the block already in force. The order says Kalshi is not liable for what a notified FCM does. It covers sports only, not elections or other categories.

    3. · U.S. District Court, W.D. Mich. (Maloney, J.)

      Judge Maloney entered a stipulated order in which Robinhood agreed to stop offering new sports-related event contracts in Michigan on any DCM, including KalshiEX's, by end of day September 9, 2026, and to close open ones by October 9, 2026. In exchange, Michigan will not bring enforcement actions against Robinhood while it complies.

      Primary source

      The agreement lasts until the Sixth Circuit appeals (Robinhood, Polymarket, Coinbase, Kalshi Ohio/Tennessee) are finally resolved, including cert, or until the Ingham County PI is dissolved. Neither side concedes its legal position. Sept. 4 was also the third business day after the PI; Kalshi's FCM-notice deadline is computed, not reported.

  8. Turning point · · Michigan Gaming Control Board / U.S. District Court, W.D. Mich.

    Robinhood stopped offering new sports-related event contracts, including those listed on Kalshi's exchange, to Michigan customers at end of day, and the MGCB announced the agreement.

    Primary source: MGCB release, 9 Sep 2026

    This closed the main route to Kalshi-listed sports contracts that the Kalshi PI does not directly reach (FCMs). Whether other FCMs besides Robinhood still offer them in Michigan was not verified.

  9. Turning point · · U.S. District Court, W.D. Mich.

    Robinhood's deadline to close any open sports-related event contracts held by Michigan customers.

    Primary source: Robinhood stipulation and order, ECF No. 50

    Future date as of 2026-09-23.

Why did a Michigan court block Kalshi's sports contracts?

Michigan's Gaming Control Board told the federal regulator in April 2025 that buying a sporting event contract is "materially identical to an internet sports betting wager" under the state's Lawful Sports Betting Act (letter to the CFTC, p.1). Attorney General Dana Nessel sued Kalshi on March 3, 2026 in Ingham County Circuit Court, asking the court to declare its sports operation a public nuisance and stop it for good (complaint). Kalshi moved the case to federal court, and Judge Paul Maloney sent it back on June 25 (remand opinion).

Judge Rosemarie Aquilina issued a restraining order on June 29 and signed a preliminary injunction on September 1, ruling that the state "has satisfied the elements necessary for the entry of a preliminary injunction" (p.1). Among the harms she named: Michigan's legal gaming industry requires bettors to be 21 or older, while Kalshi lets people trade from 18 (p.2). The injunction covers "any activity in connection with sports wagering" and lasts "until a final order has been issued in this case" (pp.3, 5).

It is a state-court order, like Washington's and Nevada's. The federal appeals courts have split on whether federal commodities law preempts rules like Michigan's, and the Supreme Court has been asked to settle it: Kalshi at the Supreme Court follows the petitions, and is Kalshi gambling? sets out both sides. A ruling on gambling law is not a ruling on how your trades are taxed.

What happens to open Kalshi sports positions in Michigan?

The order doesn't say whether you can exit. It bars Kalshi from "settling" sports contracts for anyone located in Michigan (p.3), which is the step that pays out a resolved market. Earlier in the case the state court and the federal regulator pulled in opposite directions. On July 6 the state court told the parties in writing that the Michigan trades it had identified must be "voided, cancelled and refunded", and Kalshi asked the federal regulator to let it force-close those positions (CFTC order). On July 14 the CFTC stayed Kalshi's rule and ordered it to honor the open Michigan trades under its normal practices instead (CFTC release). We haven't found how that conflict was resolved.

Why does Kalshi say my location is restricted in Michigan?

The order turns on where you are: it covers "any person located in Michigan" (p.3). Kalshi has to check that through a geolocation provider licensed by the Michigan Gaming Control Board that meets the Board's Technical Bulletin No. 2024-03, and it owes $500,000 for each day the court finds it didn't comply (p.4). The order reaches only sports contracts and products "functionally similar" to sports betting, such as parlays and in-game bets (p.4). Election, economics and Kalshi's other markets are outside it.

Does the Michigan order reach Robinhood?

The order binds Kalshi and "all other persons and entities who receive actual notice" of it, "whether acting individually or in active concert or participation with" Kalshi (p.3). It made Kalshi send a copy within three business days to every futures commission merchant, the brokers that sell Kalshi's sports contracts to their own customers, and says Kalshi isn't liable for what a notified broker does (pp.4-5).

Robinhood also agreed terms in its own federal case. In a stipulated order entered September 4, it agreed to stop offering new sports-related event contracts in Michigan "that are traded on any DCM, including the DCMs operated by KalshiEx LLC" (federally registered exchanges) by the end of September 9, and to close its Michigan customers' open ones by October 9 (pp.3-4). The Michigan Gaming Control Board announced it on September 9. Whether any other broker still offers Kalshi's sports contracts in Michigan, we haven't verified.

The order doesn't decide how Kalshi trades are taxed. Trades you already made still belong on your federal return: how to file Kalshi taxes.

Every other state's status, from the same data: is Kalshi legal in my state?

Kalshi, state by state · as of Sep 22, 2026

Tap a state to see what’s switched off there, what happens to your money, and the order behind it.

  • Switched off · 3
  • Ordered, on hold · 1
  • Being fought · 15
  • No action found · 32
  • Some categories off

MichiganSwitched off1 of 12 categories offsince Jun 29, 2026

Sports contracts are switched off. The order names no other category.

  • Withdraw your cash: not addressed. The order doesn't mention withdrawals. Primary source
  • Close open positions: not addressed. The order bars Kalshi from settling sports contracts for anyone in Michigan, and doesn't say whether you can exit. The federal regulator separately ordered trades to be honoured in the normal way, so this is unresolved. Primary source
  • New trades: blocked. No sports trades for anyone located in Michigan, enforced with a Michigan-licensed geolocation vendor. Primary source
  • Deposits: blocked. No deposits or account funding for sports trading. Primary source
  • Money back to users: not addressed. Nothing for users. The $500,000-a-day fines go to the state. Primary source

Off: Sports

Ingham County Circuit Court (Judge Rosemarie Aquilina) signed a preliminary injunction on September 1. It covers sports betting and similar products only, and requires a Michigan-licensed geolocation vendor, with a $500,000 fine for each day geolocation is found non-compliant.

What’s next: The case continues toward a final order.

Primary source: Ingham County Circuit Court (Judge Rosemarie Aquilina), Sep 1, 2026

Every Kalshi ruling in Michigan, in order →

Kalshi status by state, as of Sep 22, 2026
StateStatusWhat it meansSince
MichiganSwitched off (1 of 12 categories off)Sports contracts are switched off. The order names no other category.Jun 29, 2026
NevadaSwitched off (3 of 12 categories off)Sports, election and entertainment contracts are switched off.Mar 20, 2026
WashingtonSwitched off (7 of 12 categories off)Seven of Kalshi's twelve categories are switched off, sports and elections among them. The order lets finance, economics, climate and commodities keep trading, and doesn't say whether crypto is covered.Sep 2, 2026
MassachusettsOrdered, on holdA court ordered sports contracts off, then paused it. You can still trade here.
ArizonaBeing foughtArizona's criminal case against Kalshi is blocked for now. Nothing is switched off.
ConnecticutBeing foughtConnecticut has sued. Nothing is switched off yet.
IllinoisBeing foughtIn court. Nothing is switched off yet.
IowaBeing foughtKalshi lost a bid to stop Iowa. Nothing is switched off yet.
KentuckyBeing foughtKentucky has sued. Nothing is switched off yet.
MarylandBeing foughtIn court. Nothing is switched off yet.
MinnesotaBeing foughtA state ban was passed, then paused by a federal court.
MissouriBeing foughtA cease-and-desist was sent in September. Nothing is switched off yet.
MontanaBeing foughtA cease-and-desist is on hold. Nothing is switched off.
New JerseyBeing foughtKalshi won here. New Jersey has asked the Supreme Court to step in.
New YorkBeing foughtNew York has sued. Nothing is switched off yet.
OhioBeing foughtKalshi lost its bid to stop Ohio. Nothing is switched off yet.
TennesseeBeing foughtKalshi won the first round. Nothing is switched off.
UtahBeing foughtA federal court ruled for Utah. Nothing is switched off yet.
WisconsinBeing foughtWisconsin has sued. Nothing is switched off yet.
Every other stateNo action foundAlabama, Alaska, Arkansas, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Mississippi, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Virginia, West Virginia, Wyoming

Kalshi event contracts, state by state. What a court or regulator has actually done, as it stands on the date above. Not legal advice.

Sources for Kalshi in Michigan

  1. Primary source MGCB release, 29 Apr 2025. Cited 1×, checked Sep 23, 2026.
  2. Primary source Robinhood stipulation and order, ECF No. 50. Our copy. Cited 4×, checked Sep 23, 2026.
  3. Primary source Remand opinion, ECF No. 20 ('Two days after the complaint was filed, Defendant filed its notice of removal'). Our copy. Cited 2×, checked Sep 23, 2026.
  4. Primary source TRO signed June 29, 2026. Our copy. Cited 1×, checked Sep 23, 2026.
  5. Primary source MGCB release, 9 Sep 2026. Cited 1×, checked Sep 23, 2026.
  6. Primary source Michigan Gaming Control Board letter to the CFTC on sporting event contracts, Michigan Gaming Control Board, Apr 29, 2025. Cited 1×, checked Sep 23, 2026.
  7. Primary source Nessel ex rel. People of Michigan and MGCB v. KalshiEX, Ingham County Circuit Court: Complaint (dated 2026-03-03), Michigan Attorney General, for the People and the MGCB, No. 26-1087-CZ, Mar 3, 2026. Our copy. Cited 2×, checked Sep 23, 2026.
  8. Primary source CFTC order staying Kalshi emergency rule (Michigan unwind), 2026-07-14, CFTC, Jul 14, 2026. Our copy. Cited 3×, checked Sep 23, 2026.
  9. Primary source CFTC release 9267-26: CFTC stays KalshiEX rule change and exercises emergency authority, Commodity Futures Trading Commission, Jul 14, 2026. Cited 1×, checked Sep 23, 2026.
  10. Primary source Ingham County Circuit Court No. 26-1087-CZ: Preliminary Injunction Order (signed 2026-09-01), Ingham County Circuit Court (Judge Rosemarie Aquilina), No. 26-1087-CZ, Sep 1, 2026. Our copy. Cited 20×, checked Sep 23, 2026.
  11. Secondary source InGame, 13 Jul 2026 (secondary). Cited 2×, checked Sep 23, 2026.

Questions people ask

Is Kalshi legal in Michigan?

Kalshi is available in Michigan except for sports. As of September 22, 2026, an Ingham County Circuit Court preliminary injunction signed September 1, 2026 bars Kalshi from offering sports contracts to anyone located in Michigan. The order names no other category, so Kalshi's election, economics and other markets aren't blocked.

Why can't I bet on Kalshi in Michigan?

If the market is a sports contract and you are located in Michigan, a court order bars Kalshi from offering it to you, taking deposits for it, or letting you open or fund an account to trade it. The order requires Kalshi to check your location through a geolocation provider licensed by the Michigan Gaming Control Board. Markets outside sports aren't covered.

Why did Michigan ban Kalshi?

Michigan hasn't banned Kalshi outright: only sports contracts are off. Attorney General Dana Nessel sued in March 2026 under the Lawful Sports Betting Act, arguing Kalshi's sports contracts are unlicensed internet sports betting. Judge Rosemarie Aquilina issued a restraining order on June 29, 2026 and a preliminary injunction on September 1, finding the state had met the requirements for one.

Can I withdraw my money from Kalshi in Michigan?

The Michigan order doesn't mention withdrawals. It bars Kalshi from accepting deposits for sports contracts from anyone located in Michigan, and from settling sports contracts for them. It says nothing either way about taking your cash out.

Can I still trade Kalshi's sports contracts through Robinhood in Michigan?

No, not new ones. In a federal-court stipulation entered September 4, 2026, Robinhood agreed to stop offering new sports-related event contracts in Michigan traded on any federally registered exchange, including Kalshi's, by the end of September 9, and to close its Michigan customers' open ones by October 9, 2026.

Does the Michigan ruling change how Kalshi trades are taxed?

No. A state court finding that Kalshi likely breaks state gambling law isn't a ruling on how your trades are taxed. Federal tax treatment is a question under the Internal Revenue Code, and no court or IRS guidance has settled it for event contracts.

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