Written by :
Published on :
Detroit, MI (Gambling911.com) - No. 16 Michigan escaped a massive upset in their season opener, defeating Western Michigan 13-12 on a controversial, last-second Hail Mary touchdown. The game marked the debut of new Wolverines head coach Kyle Whittingham. Then came the grading by sportsbooks and prediction markets.
Reports started coming in on Sunday that the prediction market Kalshi paid out the wrong winners a jaw-dropping $18.6 million before Michigan's miracle comeback.
Kalshi settled its Western Michigan versus Michigan market before the game ended, paying traders who backed the losing team. The exchange then attempted to claw that money back.
Traditional sportsbooks paid out those backing Western Michigan on the spread. They were, after all, a +27.5 underdog. Moneyline bets went to the Wolverines once this was said and done. Kalshi operates as a YES and NO platform, similar to the moneyline. There are no spreads.
So what exactly caused the snafu?
It was more about what occurred on the field.
Michigan trailed 12-7 with the clock reading zero after an incomplete Hail Mary attempt. Western Michigan players had already run onto the field to celebrate.
Officials then reviewed the play and ruled that a Western Michigan defender touched the ball from out of bounds. One second still showed on the clock.
That second was restored and quarterback Bryce Underwood threw a 47-yard touchdown to JJ Buchanan, and Michigan won 13-12.
Kalshi had already treated the zeroed clock as the final state.
Kalshi had already treated the zeroed clock as the final state. It paid the Western Michigan side, then reversed those payouts. It reimbursed the wrongly marked losers and paid Michigan holders last.
Michigan has not been good to Kalshi in recent days. That state's court entered a preliminary injunction requiring Kalshi to maintain geofencing to block Michigan residents and those within Michigan's borders from having access to its sports-event contracts. Violations of the order would result in a $500K per day fine. One would suspect a good chunk of Kalshi trades originated from The Great Lakes State.
- Mary Montgomery, Gambling911.com
