- The Tennessee Sports Wagering Council ordered **Polymarket**, **Kalshi**, and **crypto.com** to stop offering sports prediction markets to Tennessee users and to refund wagers.
- The regulator demanded refunds of pending sports bets by the end of the month and warned of fines up to $25,000 for violations.
- The companies say their sports markets are federally regulated events contracts, not state-regulated sports betting, and are unlikely to comply.
- Data shows **Kalshi** handled over $23.8 billion in sports-related trading volume, making sports markets a major part of its business.
- The dispute follows similar state actions and ongoing litigation by the industry that could reach the Supreme Court.
Tennessee regulators on Friday instructed Polymarket, Kalshi, and Crypto.com to remove sports-related prediction markets available to Tennessee customers and to refund any pending sports wagers by the end of the month. The Tennessee Sports Wagering Council issued the cease-and-desist orders and cited the platforms’ failure to meet state gambling requirements.
The regulator said the companies did not enforce Tennessee’s standards, such as requiring participants to be at least 21, offering self-exclusion lists, or setting limits on bet amounts and time spent betting. It also threatened fines up to $25,000 against the platforms for violations of state rules.
The three firms have argued their sports markets are federally regulated events contracts rather than state-governed sports betting, and they have resisted similar state bans before. Other states, including Illinois, Connecticut, and Michigan, previously tried to bar top platforms from offering sports prediction markets without state compliance.
Industry volumes underline why firms may resist state orders. Data from Dune shows Kalshi recorded over $23.8 billion in trading on sports-related markets in the past year, representing a large share of its activity. That economic scale helps explain why companies have continued operating despite state actions.
Representatives for the three companies did not immediately respond to requests for comment. The firms have also filed legal challenges over jurisdiction, setting up a broader court fight that legal observers expect could ultimately reach the Supreme Court. For contact or platform information, see Crypto.com.
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