Kalshi Sues Tennessee to Continue Sports Event Contracts

Tennessee regulators attempted to stop Kalshi from offering sports event contracts, issuing a cease-and-desist order. Kalshi responded with a lawsuit, and a federal judge temporarily halted the enforcement, allowing Kalshi to operate until a hearing on Jan. 26.

Kalshi vs. Tennessee

The Tennessee Sports Wagering Council accused Kalshi of operating without a state license, threatening fines and law enforcement referral.
Kalshi claims it is under federal oversight as a registered derivatives exchange, regulated by the Commodity Futures Trading Commission.
Tennessee argues its Sports Gaming Act applies, defining Kalshi’s activities as gambling.

Regulatory Actions

Tennessee also targeted Polymarket and Crypto.com, alleging illegal sports wagering without state approval.
Congressman Ritchie Torres introduced legislation to prevent government officials from betting on prediction markets regarding political outcomes.
Ukraine's national electronic communications regulator blocked Polymarket, citing lack of necessary licenses for gambling activities.