Overview
- U.S. District Judge Aleta Trauger issued a temporary restraining order on Jan. 12 preventing Tennessee from enforcing its gambling laws against Kalshi, with a preliminary injunction hearing set for Jan. 26.
- The Tennessee Sports Wagering Council on Jan. 9 sent cease-and-desist letters to Kalshi, Polymarket, and Crypto.com, directing them to halt sports event contracts for state residents, void positions, and refund balances by Jan. 31.
- State officials argue the platforms’ sports contracts meet the statutory definition of sports wagering, requiring a Tennessee license, consumer safeguards, and payment of the wagering privilege tax.
- The letters cite gaps in age verification, responsible-gaming tools, and anti-money-laundering controls, and warn of civil fines up to $25,000 per violation, injunctive relief, and potential felony referrals.
- Kalshi contends CFTC oversight preempts state regulation; broader litigation in multiple states has produced mixed outcomes, and the Tennessee order still stands against Polymarket and Crypto.com.