Tennessee regulator warned that failure to comply could trigger steep fines, court injunctions and potential law enforcement referrals for for further investigation.
Tennessee’s sports betting regulator has ordered prediction market platforms Kalshi, Polymarket and Crypto.com to halt the offering of sports event contracts to residents of the state.
In cease-and-desist letters dated Friday, the Tennessee Sports Wagering Council (SWC) accused all three platforms of illegally offering sports wagering products without holding a license issued under the Tennessee Sports Gaming Act, according to copies of the letters published on X by sports betting attorney Daniel Wallach.
The SWC said the sports event contracts listed on Kalshi, Polymarket and Crypto.com’s North American Derivatives Exchange allow users to wager money on the outcome of sporting events, a practice Tennessee law reserves exclusively for licensed sportsbooks. The regulator argued that packaging the products as “event contracts” does not exempt them from state gambling statutes.
