A Michigan judge temporarily blocked prediction market Kalshi from allowing residents to place bets on sporting events, after the state’s attorney general accused the platform of violating gambling laws.<\/p>\n
Kalshi was hit with a temporary restraining order from Ingham County Circuit Court Judge Rosemarie Aquilina, who said the platform would be fined $120,000 for each day it fails to comply with the order\u2019s geolocation requirements, according to a Monday court filing<\/a>. The order lasts for 14 days and expires on July 13.<\/p>\n Aquilina wrote that Michigan residents would suffer irreparable harm from being \u201cexploited by Kalshi’s sports betting operation masquerading as an investment opportunity.\u201d\u00a0<\/p>\n The move adds to the growing regulatory scrutiny on prediction market sports betting. It makes Michigan the second US state to enact a court-ordered ban on Kalshi\u2019s sports event contracts, after Nevada issued a<\/a> temporary ban on Kalshi earlier in March.<\/p>\n On June 17, Kentucky sued five<\/a> prediction market platforms, including Kalshi and Polymarket, accusing them of operating unlicensed sports betting platforms. More than a dozen other states have taken prediction market operators to court.<\/p>\n The US Commodity Futures Trading Commission (CFTC) has sued several states<\/a>, arguing that federally regulated event contracts fall under its exclusive authority.<\/p>\n Cointelegraph has approached Kalshi for comment on how the platform will respond to the verdict.<\/p>\n State of Michigan vs. Kalshi, court filing. Source: Law360<\/em><\/p>\n Sports betting activity has been rising on prediction markets since the beginning of the FIFA World Cup.\u00a0<\/p>\n Daily taker volume, which measures contracts bought or sold by traders filling existing orders, reached a record $713 million on June 20, according to Dune data<\/a>. The milestone came more than a week after the World Cup started on June 11.<\/p>\n Daily prediction market taker volume. Source: Dune<\/em><\/p>\n Looking at monthly prediction market volume, sports betting was the leading category on the two largest prediction markets, rising 40% to $9.5 billion on Kalshi and 175% to $5.3 billion on Polymarket, Defirate data<\/a> shows.<\/p>\n A June 11 Bernstein report predicted<\/a> that the 2026 FIFA World Cup would generate more than $3 billion in incremental sports betting handle and between $5 billion and $10 billion in additional consumer prediction market volume.\u00a0<\/p>\n Related: <\/strong><\/em>Kalshi in early IPO talks with investment banks: Report<\/strong><\/em><\/a><\/p>\n The World Cup winner contract alone has generated over $3.5 billion in trading volume on Polymarket, according to platform data<\/a>.<\/p>\n World Cup Winner event contract. Source: Polymarket<\/em><\/p>\n The growing betting activity helped Polymarket emerge as<\/a> an onboarding layer for new cryptocurrency users, as about 60% of World Cup bettors interacted with the blockchain for the first time during their prediction market entry, according to a Bitget Wallet study of 857,000 users, shared with Cointelegraph.<\/p>\nPrediction market sports betting rises after the FIFA World Cup<\/h2>\n
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