"Kalshi offers an online sports betting operation to residents in the State of Michigan without the licensing approval of the Michigan Gaming Control Board. Specifically, Kalshi operates a so-called prediction market through which residents of the State of Michigan can engage in unlicensed gambling under the guise of trading event contracts."
"State lawyers say the company allows customers to buy contracts tied to the outcome of sporting events and other sports-related scenarios. If a user's prediction is correct, they stand to make money. The filing also says Kalshi does business across the country, including in Michigan, where it allegedly promotes its platform to residents and processes transactions using common financial systems available to consumers in the state."
Michigan Attorney General Dana Nessel filed a civil enforcement action against Kalshi in Ingham County Circuit Court, making Michigan the tenth state to litigate with the company and the third to sue as a plaintiff in state court. The lawsuit alleges that Kalshi operates an unlicensed sports betting platform in Michigan despite presenting itself as a financial trading platform. Kalshi allows residents to purchase contracts tied to sporting event outcomes, enabling users to profit from correct predictions. The state claims these practices violate Michigan's gambling prohibitions and provisions of the Lawful Sports Betting Act. Kalshi allegedly promotes its platform to Michigan residents and processes transactions using standard financial systems available to state consumers.
Read at ReadWrite
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