Anastase Markou speaks with WZZM on Kalshi’s legal challenges in Michigan
In an interview with WZZM 13, Markou Montague Levine Defense Partner Anastase Markou spoke about the legal challenges online sports wagering Kalshi faces in Michigan.
Michigan Attorney General Dana Nessel alleges Kalshi’s operations amount to illegal sports gambling, risking hefty fines if non-compliant. Kalshi’s service allows users to place wagers on anything from who the President visits to sports futures.
“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.”
However, Nessel, along with many legal analysts, believe this amounts to unverified and illegal sports gambling.
“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.”
A preliminary injunction has been filed in Nessel’s case against Kalshi that blocks users in Michigan from having access to sports wagering on the platform. Ahead of the injunction, attorneys representing Kalshi sent a letter to the AG’s office, maintaining that Kalshi is operating legally federally, but also suggesting other prediction market sites, like Polymarket, aren't under the same scrutiny.
“Judges are supposed to give attorney generals in the statewide discretion on who they choose to go after and who they choose not to,” Markou said. “Just because other people are breaking the law, doesn't mean that Kalshi gets a pass.”
Ultimately, Markou said that he suspects Kalshi will 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.”
Nessel said Kalshi would have to pay $500,000 a day if it doesn't comply with the injunction.
Watch the full interview, here.
