Anastase Markou Explains Why Kalshi Faces an Uphill Legal Battle in Michigan
Markou Montague Levine Defense partner Anastase Markou joined WZZM 13 to break down the State of Michigan’s case against Kalshi, an online platform that lets users place wagers on everything from sports futures to which cities the President will visit.
Michigan Attorney General Dana Nessel contends that Kalshi is operating an illegal sports betting business in the state, and the company could face substantial penalties if it does not comply with state law. Markou explained what the platform actually does:
“Kalshi is an organization or corporation that engages in online wagering, and the wagering is described in multiple ways,” Markou told WZZM. “Sports futures, meaning what’s going to be happening down the road in sports ... they also have other wagering on it, so it’s basically a form of a gambling, online gambling operation.”
Why Michigan Says Kalshi Needs State Approval
Michigan strictly controls who may run gambling operations within its borders. Nessel and a number of legal analysts argue that Kalshi is effectively offering unlicensed sports betting to Michigan residents. Markou agreed that the company has not cleared the state’s requirements:
“Michigan has very specific laws and regulations about who was allowed to conduct gambling operations in the state of Michigan,” Markou said. “Kalshi has not gotten approval to engage in that type of gambling operation with Michigan residents.”
Kalshi’s Defense: “Others Are Doing It Too”
The case now includes a preliminary injunction that blocks Michigan users from sports wagering on the platform. Before the injunction, Kalshi’s attorneys sent a letter to the Attorney General’s office arguing that the company operates legally under federal law. They also pointed out that other prediction markets, such as Polymarket, have not faced the same level of scrutiny.
Markou does not expect that argument to hold up in court:
“Judges are supposed to give attorneys general statewide discretion on who they choose to go after and who they choose not to,” he said. “Just because other people are breaking the law, doesn’t mean that Kalshi gets a pass.”
What Comes Next
Markou believes Kalshi is likely to lose the case.
“You can’t engage in something that is akin to sports gambling and other types of gambling operations in Michigan without following Michigan law,” he said. “That’s the bottom line.”
According to Nessel, Kalshi could be fined $500,000 per day if it fails to comply with the injunction.
