Tennessee tells Kalshi, Polymarket and Crypto.com to stop sports event contracts

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, according to copies published on X by sports betting attorney Daniel Wallach.

The Tennessee Sports Wagering Council (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 and accused the platforms of offering sports wagering without a license under the Tennessee Sports Gaming Act.

The regulator argued that packaging the products as 'event contracts' does not exempt them from state gambling statutes and pointed to missing consumer protections such as age restrictions, responsible gaming tools and anti-money laundering controls. The SWC ordered the companies to immediately stop offering sports-related contracts to Tennessee residents, void all existing contracts entered into by users in the state and refund all funds on deposit by Jan.

31, 2026. The letters warned that failure to comply could result in fines up to $25,000 per offense and said continued noncompliance could lead to injunctive relief and referrals to law enforcement. The SWC also maintained that federal registration with the Commodity Futures Trading Commission does not override Tennessee's authority to regulate sports wagering.

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Crypto, Kalshi, Polymarket, Crypto.com, Tennessee Swc, Cftc