A Michigan court has issued a 14-day temporary restraining order against Kalshi, blocking the platform from offering sports prediction markets in the state. The move reflects an escalating jurisdictional battle over who regulates prediction market platforms, with multiple state regulators asserting authority that conflicts with oversight by the federal Commodity Futures Trading Commission. Kalshi has argued that its event contracts fall under CFTC jurisdiction, potentially shielding it from state-level gaming and gambling laws. State authorities, however, contend that sports-related contracts resemble unlicensed sports betting and should be subject to local regulation. The Michigan order adds to a growing list of legal challenges Kalshi faces across several states as it expands its sports-focused offerings. The dispute could ultimately require courts to clarify the boundary between federally regulated derivatives and state-regulated gambling activities.
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