Tennessee Orders Kalshi, Polymarket, Crypto.com to Halt Sports Betting

The Tennessee Sports Wagering Council (SWC) issued cease-and-desist letters to prediction market platforms Kalshi, Polymarket, and Crypto.com, ordering them to immediately halt offering sports event contracts to Tennessee residents. The SWC claims these platforms are illegally offering sports wagering without a license under the Tennessee Sports Gaming Act, arguing that labeling the wagers as "event contracts" does not exempt them from state gambling statutes. The regulator demanded that the companies void all existing state contracts and refund user funds by January 31, 2026, warning of potential fines up to $25,000 per offense and law enforcement referral for non-compliance. Although Kalshi and Polymarket are registered with the CFTC, the SWC asserted that federal registration does not supersede Tennessee's authority. This action mirrors similar regulatory scrutiny in other states, such as Connecticut, where Kalshi is currently challenging a cease-and-desist order in federal court.

(Source：Cointelegraph)