Overview
- On Jan. 9, the Tennessee Sports Wagering Council sent cease-and-desist letters requiring an immediate stop to sports-event contracts and refunds to Tennessee users by Jan. 31.
- The council says these offerings meet the state’s definition of unlicensed sports wagering because the firms lack a Tennessee license and do not pay required taxes.
- Noncompliance could bring civil penalties escalating to $25,000 per violation and potential criminal referrals for aggravated gambling promotion.
- Kalshi and Polymarket point to their CFTC designation as federally regulated markets, with the companies arguing their products differ from state-licensed sportsbooks.
- The action follows similar steps by Connecticut in December 2025, highlighting growing state pressure on prediction-market products.