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Key Takeaways
- Tennessee’s Sports Wagering Committee has issued cease-and-desist orders to Kalshi, Polymarket, and Crypto.com.
- Regulators want the companies to immediately stop offering sports contracts in Tennessee.
The Tennessee Sports Wagering Council (SWC), which regulates and licenses online sports betting and fantasy sports, has issued formal cease-and-desist demands to Kalshi, Crypto. The platforms were accused of violating state gambling laws by offering sports-related contracts without permission, according to com and Polymarket, accusing the platforms of breaching states gambling law.
The orders were first reported by sports betting attorney Daniel Wallach on X.
BREAKING Tennessee Sports Wagering Council sends cease-and–desist letters to Kalshi (), Polymarket and Crypto demanding that they stop offering sports event contracts to TN customers immediately, cancel all remaining contracts and issue refunds by Jan. 31 s. The next lawsuits are coming in the near future, . p pic paraphrasingr tweeted @? Com/jDIPIwsrCn com/JD IPIWsRC
Daniel Wallach (@WALLACHLEGAL) January 9, 2026
The regulator argues that the legality of allowing users to risk money on the outcome of sporting events is in line with the statutory definition of sports wagering, whether the products are called prediction markets or derivatives.
It is the letters that operating such products in Tennessee requires a state license and compliance with consumer-protection, as well as tax obligations, which the council says the companies do not comply with consumers.
By January 31, Tennessee ordered each platform to stop sports contract offerings for Tennessee residents, cancel existing contracts and refund user balances. Also, the state said it was also ‘advanced operations could lead to increasing fines and court proceedings.
CFTC oversight oversees the use of federally regulated prediction market platforms such as Kalshi and Polymarket, which allows users to trade contracts on various real-world outcomes. crypto, a who is in the process of Crypto. The crypto exchange, primarily called com, also provides market predictions for prediction services such as.
Thanks for reading Tennessee targets Kalshi Polymarket and Cryptocom over sports betting
