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Tennessee Orders Kalshi, Polymarket and Crypto.com to Halt Sports Event Contracts

The directives test whether CFTC‑regulated prediction markets fall under state gambling laws or federal derivatives rules.

Overview

  • The Tennessee Sports Wagering Council issued cease‑and‑desist letters on Jan. 9 directing the three platforms to stop offering sports contracts to state residents.
  • Regulators ordered the firms to void open sports contracts and refund affected Tennessee users by Jan. 31.
  • State officials warned that violations could bring civil penalties up to $25,000 per offense with potential felony referrals for continued noncompliance.
  • The council says the companies lack a Tennessee sports wagering license and do not pay the state’s wagering privilege tax, classifying their offerings as illegal wagers.
  • Kalshi, Polymarket and Crypto.com cite CFTC oversight to distinguish their markets from sportsbooks as Tennessee joins other states that have taken similar actions.