Kalshi faces $500,000-a-day fine risk in Michigan contempt bid

The preliminary injunction allows a $500,000 daily fine for noncompliance.

The hit

Michigan’s attorney general has asked a court to hold Kalshi in contempt, alleging it kept marketing sports contracts to residents after a judge barred them. Dana Nessel’s office filed the motion citing emails & a Sept. 20 YouTube ad for a Los Angeles Rams game.

Why it matters

The fight has shifted from who regulates prediction markets to whether firms actually comply once a court rules. Michigan’s case targets marketing rather than trading access. Nevada’s dispute centred on access & allegedly completed trades, with Kalshi blaming investigators for misrepresenting their residence & using an older app version. According to SBC Americas, a system that blocks trading does not necessarily resolve a separate prohibition on marketing.

The record

Preliminary injunction issued	Sept. 1, 2026 (Ingham County Circuit Court)
Daily fine for noncompliance	Raised from $120,000 to $500,000 (court order)
Contempt motion filed	Sept. 29, 2026 (Michigan AG Dana Nessel)
Nevada penalty sought	$120,000 daily plus legal fees (Nevada Gaming Control Board)

What happens next

Judge Rosemarie Aquilina scheduled a Nov. 24 hearing for Kalshi to explain why it should not be held in contempt.

Sources: SBC Americas – Did Kalshi violate Michigan order by targeting ads to residents? · DeFi Rate – Michigan wants Kalshi held in contempt as state crackdown moves beyond trading

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