Kalshi and Polymarket, along with Crypto.com, are under scrutiny in Tennessee over concerns their platforms may be offering unlicensed sports gambling. The Tennessee Sports Wagering Council (SWC) issued cease-and-desist letters demanding the platforms halt sports-related event contracts, void unsettled positions, and refund customers. Kalshi has challenged the order in federal court, arguing its operations fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), which designated KalshiEX as a contract market in 2020. The SWC contends that the platforms are violating state sports wagering laws by offering contracts without a license and lacking consumer protections. A judge has issued a temporary restraining order against Tennessee, with a hearing set to consider a longer-lasting injunction. The case highlights a jurisdictional conflict between state and federal regulators over the classification and regulation of event-based trading contracts.

Kalshi and Polymarket, along with Crypto.com, are under scrutiny in Tennessee over concerns their platforms may be offering unlicensed sports gambling. The Tennessee Sports Wagering Council (SWC) issued cease-and-desist letters demanding the platforms halt sports-related event contracts, void unsettled positions, and refund customers. Kalshi has challenged the order in federal court, arguing its operations fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), which designated KalshiEX as a contract market in 2020. The SWC contends that the platforms are violating state sports wagering laws by offering contracts without a license and lacking consumer protections. A judge has issued a temporary restraining order against Tennessee, with a hearing set to consider a longer-lasting injunction. The case highlights a jurisdictional conflict between state and federal regulators over the classification and regulation of event-based trading contracts.