(FOX 2) - Betting website Kalshi has been ordered to stop operating in Michigan after Attorney General Dana Nessel took action against the site for violating the state's Lawful Sports Betting Act.
Kalshi has allegedly been operating in Michigan without licensing approval of the Gaming Control Board.
The backstory:
According to a lawsuit filed by Nessel, Kalshi allows users to engage in sports betting under the guise of trading event contracts as they place wagers on the likelihood of sports-related outcomes, conduct transactions through widely used financial systems. Nessel's suit said this constitutes unlicensed gambling activity.
Once Nessel's lawsuit was filed against Kalshi, the company tried to move the circuit court case to federal court. Nessel was able to get a motion of remand to keep the case in circuit court.
"Our gambling laws exist to protect Michiganders from unlicensed, predatory operations, and failing to comply with them carries serious legal consequences," Nessel said. "I am proud of the attorneys in my office who not only kept this case in state court but also secured an order protecting residents as this litigation moves forward. We remain committed to enforcing a level playing field for all gambling platforms in Michigan and ensuring that companies cannot evade accountability or exploit consumers under the guise of a prediction market."
What's next:
The temporary restraining order temporarily halts Kalshi from engaging in or advertising its internet sports betting operation in Michigan while the lawsuit continues through the court system.
The Source: This information is from a press release from AG Nessel.
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