Polymarket faces first state-level cease-and-desist from Tennessee, weeks after US relaunch: report
Tennessee regulators issued cease-and-desist letters to Polymarket, Kalshi, and Crypto.com's NDBX, demanding they stop offering sports event contracts to state residents.Summary
The Tennessee Sports Wagering Council (SWC) issued cease-and-desist letters on January 9th to prediction market platforms Polymarket, Kalshi, and Crypto.com's North American Derivatives Exchange (NDBX), demanding they immediately stop offering sports event contracts to Tennessee customers and refund all deposits by January 31, 2026. The SWC stated these contracts threaten public interest due to non-compliance with state consumer protections. All three platforms are registered with the CFTC as designated contract markets and argue that federal oversight preempts state gambling regulations. This action marks the first publicly disclosed state-level cease-and-desist against Polymarket, which recently re-entered the US market. Tennessee warned that non-compliance could lead to fines and referral to law enforcement under criminal gambling statutes, as the state views these contracts as illegal wagers that bypass state-regulated sportsbooks and tax revenue generation.
(Source：The Block)