A Michigan court has issued a temporary restraining order preventing KalshiEx LLC (Kalshi) from engaging in online sports betting activities within the state as a legal battle initiated by Attorney General Dana Nessel continues.

This state court directive comes on the heels of a decision from the U.S. District Court for the Western District of Michigan last week, which approved the Attorney General’s request to transfer the case back to state court after Kalshi sought to shift the proceedings to the federal court system.

In a public statement, Nessel emphasized that Michigan’s gambling statutes are intended to safeguard consumers from unauthorized gambling operations and to ensure compliance with state laws.

“I commend the attorneys in my office who not only succeeded in keeping this case in state jurisdiction but also obtained an order that protects residents while the litigation proceeds,” Nessel remarked. “We are dedicated to upholding a fair marketplace for all gambling entities in Michigan and prohibiting companies from avoiding responsibility or taking advantage of consumers under the guise of a prediction market.”

The legal suit, which was initiated by the Attorney General’s office in March, claims that Kalshi has breached the Michigan Lawful Sports Betting Act by permitting users to place bets on sporting events through event contracts available on its prediction market platform.

The allegations state that the platform allows Michigan residents to engage in sports wagering, facilitates transaction processing through financial services, and constitutes what the state claims to be unauthorized sports betting. The lawsuit asserts that Kalshi operates in Michigan without securing the necessary license from the Michigan Gaming Control Board.

After the lawsuit was lodged in state court, Kalshi attempted to transfer the case to the federal court. However, the federal court sided with the state, remanding the case back to the Ingham County Circuit Court.

The temporary restraining order prohibits Kalshi from operating or promoting its online sports betting service in Michigan until further judicial decisions determine the future of this legal matter.