Kalshi secures temporary block on Tennessee order targeting prediction market sports contracts

A U.S. federal judge issued a temporary injunction pausing Tennessee's cease-and-desist order that demanded prediction market operator Kalshi stop offering sports event contracts to state residents. The ruling freezes enforcement by the Tennessee Sports Wagering Council and the state attorney general while the court examines whether Kalshi's CFTC-regulated platform is exempt from state gambling laws. Kalshi argues that Tennessee's action infringes upon the Commodity Futures Trading Commission's exclusive jurisdiction over derivatives trading. This legal battle is part of a broader national conflict over whether sports-based event contracts constitute regulated derivatives or unlicensed sports betting, with courts showing mixed rulings on the matter, such as a Nevada judge previously ruling that Kalshi must comply with state gaming rules.

(Source：The Block)