Overview
- U.S. District Judge Aleta Trauger issued a temporary restraining order blocking Tennessee from applying its sports betting and gambling statutes to Kalshi.
- Tennessee’s cease-and-desist had directed Kalshi to stop offering sports event contracts, void open positions, refund users, and wind down by Jan. 31.
- The court found Kalshi is likely to succeed on the merits and would face irreparable harm if enforcement proceeded.
- Regulators warned of civil penalties up to $25,000 per violation and possible criminal referrals for aggravated gambling promotion.
- The dispute centers on whether Kalshi’s CFTC-regulated designated contract market status preempts state gambling law, with similar orders targeting Polymarket and Crypto.com and mixed rulings in New Jersey, Nevada, and Maryland.