Tennessee Stops Sports Betting Activities of Kalshi, Polymarket, and Crypto.com

Tennessee Authorities Halt Illegal Betting Activities

The sports betting regulator in Tennessee has issued cease-and-desist orders to the prediction market platforms Kalshi, Polymarket, and Crypto.com, demanding that they stop offering contracts for sporting events to residents of the state. The cease-and-desist letters, dated Friday, accused the three platforms of illegally providing sports betting products without holding a license under the Tennessee Sports Betting Act, according to copies of the letters published on X by sports betting attorney Daniel Wallach.

The Sports Wagering Council (SWC) stated that the contracts for sporting events listed on Kalshi, Polymarket, and Crypto.com's North American Derivatives Exchange allow users to wager money on the outcomes of sporting events, a practice reserved exclusively for licensed sportsbooks under Tennessee law. The regulator further emphasized that simply labeling the products as "event contracts" does not exempt them from state gambling regulations.

The authority also noted the consumer protection requirements imposed on licensed operators, including age restrictions, responsible gaming tools, and anti-money laundering controls, which are lacking in the offerings of the platforms. The SWC has demanded that the companies immediately cease offering sports-related contracts for residents of Tennessee, cancel all existing contracts made by users within the state, and refund all deposited funds by January 31, 2026. Noncompliance with these orders could result in fines of up to $25,000 for each violation, according to the letters.

The regulator also warned that continued noncompliance with these regulations could lead to injunction measures and referrals to law enforcement authorities for further investigation into illegal gambling operations.