(LANSING) - Michigan Attorney General Dana Nessel has filed a lawsuit against a New York-based prediction market company, claiming it is illegally offering sports betting to residents in the state.
The lawsuit, filed in Ingham County Circuit Court, targets Kalshi, a platform that allows users to trade contracts based on the outcomes of events such as sports games and elections. State officials say about 90 percent of Kalshi's trading activity involves sports-related predictions.
Michigan argues the platform violates the state's Lawful Sports Betting Act, which limits sports betting operations to state-licensed casinos or federally authorized tribal casinos.
The state is asking the court to declare Kalshi a sports betting platform and to issue a permanent injunction blocking the company from operating in Michigan.
Kalshi operates under federal oversight by the Commodity Futures Trading Commission, which regulates prediction markets. Federal officials have argued those markets fall under financial regulation rather than state gambling laws.
Michigan's lawsuit follows similar legal challenges against Kalshi in Nevada and Massachusetts, as courts and regulators continue to debate whether prediction markets should be treated as financial products or gambling.