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Michigan Seeks Contempt Finding Against Kalshi Over Alleged Ad Violations

Michigan’s attorney general is asking a state court to hold Kalshi in contempt over advertisements allegedly delivered to Michigan residents despite a preliminary injunction.
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Michigan’s attorney general is asking a state court to hold Kalshi in contempt over advertisements allegedly delivered to Michigan residents despite a preliminary injunction.

A Nov. 24 show-cause hearing is scheduled.

The dispute concerns whether Kalshi complied with restrictions on promoting sports event contracts, not just whether it stopped offering them in Michigan. The state’s motion cites ads delivered through email, social media and YouTube, according to SBC Americas.

Michigan Cites Ads After Sept. 1 Injunction

Atty. Gen. Dana Nessel filed an ex parte motion in Ingham County Circuit Court asking Judge Rosemarie Aquilina to hold Kalshi in contempt over its prediction markets ads.

The filing cites three people who allegedly received Kalshi advertisements after the Sept. 1 preliminary injunction. Two saw ads promoting “markets you don’t want to miss.” A third saw an ad reading “Kalshi: Trade Football and More,” with an invitation to download the app to bet on NFL football.

“Instead of complying with the terms of the preliminary injunction, Kalshi elected to thumb its nose at the Court,” the attorney general’s filing says.

The motion asks for a contempt finding, a fine and reimbursement of enforcement costs and attorney’s fees.

Order Covers More Than Platform Access

The injunction bars Kalshi from activity connected with sports wagering in Michigan, including advertising, promoting, marketing or soliciting participation in internet sports betting contracts to people located in Michigan or using a Michigan address.

Its scope includes websites, mobile apps, email, push notifications, social media, influencers, affiliates and paid placements. The state’s allegations therefore concern compliance with advertising restrictions, separately from restrictions on access to the contracts themselves.

Kalshi previously agreed to stop offering sports event contracts in Michigan following court setbacks. The company had faced potential fines of up to $500,000 per day if it failed to geoblock Michigan users. That potential penalty is distinct from the fine requested in the contempt motion.

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Source: As reported by SBC Americas.

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