Michigan Attorney General Dana Nessel has filed a lawsuit against Kalshi, accusing the prediction markets operator of violating Michigan’s Lawful Sports Betting Act.

The lawsuit seeks an order of abatement and injunctive relief to halt what the Attorney General describes as the unlawful offering of online sports wagers to Michigan residents.

The Attorney General argues that entities like Kalshi continue to circumvent Michigan’s Lawful Sports Betting Act, as well as gaming prohibitions imposed by the Penal Code, and thereby threaten the health, safety and welfare of Michigan citizens.

“Corporations cannot circumvent state gaming laws,” said Attorney General Nessel. “My office will hold those who sidestep Michigan’s consumer protections accountable and ensure that betting in our state remains lawful, fair and subject to the oversight our residents expect and deserve.”

Under the state’s Lawful Sports Betting Act, online sports betting licenses are only available to licensed Michigan casinos or federally authorised tribal casinos.