- The Tennessee Sports Wagering Council ordered Kalshi, Polymarket and crypto.com to stop offering sports event contracts to state residents.
- The cease-and-desist letters, dated Friday, say the platforms offered unlicensed sports wagering and that labeling products as “event contracts” does not exempt them.
- The regulator demanded the platforms void existing Tennessee contracts and refund deposits by Jan. 31, 2026.
- Noncompliance could lead to fines up to $25,000 per offense, injunctive relief and law enforcement referrals.
- Kalshi and Polymarket are registered with the CFTC, but the council said federal registration does not override Tennessee authority.
The Tennessee Sports Wagering Council sent cease-and-desist letters on Friday ordering Kalshi, Polymarket and Crypto.com to stop offering sports-related contracts to residents of the state, saying the platforms operated without a Tennessee sports wagering license and that the letters were publicly published on social media.
The council said the platforms’ listed contracts allow users to wager money on sporting events, an activity Tennessee reserves for licensed sportsbooks. It argued that packaging the products as "event contracts" does not remove them from state gambling laws.
Regulators also pointed to missing consumer protections on the platforms, including age checks, responsible gaming tools and anti-money-laundering controls that licensed operators must provide. The letters ordered the companies to immediately cease offering sports-related contracts to Tennessee residents, to "void all existing contracts entered into by users in the state and refund all funds on deposit by Jan. 31, 2026."
The council warned that failure to comply could result in fines of up to $25,000 per offense and could prompt injunctive relief or law enforcement referrals for alleged illegal gambling operations. While Kalshi and Polymarket are registered with the U.S. Commodity Futures Trading Commission, the council maintained that federal registration does not override Tennessee’s authority to regulate sports wagering inside the state.
A separate federal court action recently gave Kalshi a temporary reprieve in Connecticut after a judge blocked enforcement of that state’s cease-and-desist order while the company seeks a preliminary injunction; the judge set deadlines for filings and scheduled oral arguments for mid-February.
Readers are encouraged to verify details and may consult the editorial policy for information on reporting standards.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Altcoins Tick Up; Solana, BNB Bearish While Majors Bull Now!
- Ethereum social sentiment drops to pre-2025 rally levels now
- Ethereum RSI Pattern Signals Potential Rally Toward $8,500!!
- Bitcoin difficulty dips to 146.4T; set to rise Jan 22, 2026.
- Chevron Surges After US Seizes Venezuela, $3B Oil Deal Gain!
