Kalshi has been granted a short lived restraining order after it filed a lawsuit towards the Tennessee Sports activities Wagering Council, arguing it tried to interact “in good religion” however was solely met with a stop and desist.
In a lawsuit filed towards the Tennessee Sports activities Wagering Council on Friday (January 9), Kalshi has claimed that it tried to open a dialogue with the Council however representatives refused to satisfy with the prediction market operator. This was then adopted with a cease-and-desist letter to Kalshi, in addition to two different prediction markets, that demanded Kalshi stop all operations in Tennessee.
The decide on the lawsuit granted a short lived restraining order for Kalshi towards the council pending a listening to on January 12, as confirmed by a press release seen by ReadWrite, reasoning: “Plaintiff [Kalshi] is prone to succeed on the deserves of its claims and its rights will possible be violated by Defendants [the Council] by the enforcement of preempted state legal guidelines.”
Kalshi’s argument towards the Tennessee Sports activities Wagering Council
The lawsuit challenged the choice to dam prediction markets in Tennessee, arguing that Kalshi’s operations ought to solely be ruled by the Commodity Futures Buying and selling Fee (CFTC). This go well with was filed on the identical day because the cease-and-desist letters was despatched, together with an assertion from Kalshi that it believed the Council would imminently carry an enforcement motion towards the corporate, regardless of allegedly telling Kalshi that no such motion was deliberate.
Kalshi sued the Tennessee Sports activities Wagering Council on Friday, though the case didn’t get docketed till right now. The case has been assigned to Decide Aleta A. Trauger within the Center District of Tennessee. pic.twitter.com/H7SxgHJHNj
— Andrew Kim (@akhoya87) January 12, 2026
“Kalshi has endeavored in good religion to succeed in an lodging with Tennessee,” the corporate states within the lawsuit, as seen in authorized paperwork shared by litigator Andrew Kim. “Over the previous a number of months, Kalshi’s counsel has tried to debate the matter with the Tennessee AG, to no avail.”
The prediction market additionally included emails from a consultant for the corporate with Lacey Mase, the Chief Deputy Legal professional Common in Tennessee, as proof that makes an attempt have been made to begin a dialog. Nevertheless, Mase responded saying that she “didn’t have something to share with Kalshi in the intervening time”, however that if circumstances modified, she would organize a name.
Kalshi alleges that it made a number of makes an attempt to have a dialog with Tennessee officers about its occasion contracts, however that these officers largely refused to interact — that’s, till the Sports activities Wagering Council despatched a cease-and-desist. pic.twitter.com/mC5vtTlovC
— Andrew Kim (@akhoya87) January 12, 2026
That e-mail was dated January 6, with the cease-and-desist letters despatched simply three days letter on January 9.
Kalshi just isn’t new to going through lawsuits trying to dam its operations in different states within the US, having filed counter-suits in Nevada, New York, and Connecticut, as just some examples. In all of these circumstances, the prediction market has argued that regulation of it and different prediction markets must be carried out by the CFTC.
Featured picture: Kalshi
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