Tennessee has despatched three cease-and-desist letters to prediction markets, Kalshi, Polymarket, and Crypto.com, demanding a right away finish to operations.
Three main prediction markets have been instructed to stop operations in Tennessee, after the Tennessee Sports activities Wagering Council despatched cease-and-desist letters to Kalshi, Polymarket, and Crypto.com. As shared by playing lawyer David Wallach, the letters state that every of the three prediction markets aren’t compliant with Tennessee legal guidelines and characterize “a right away and vital menace to the general public curiosity of Tennessee.”
BREAKING: Tennessee Sports activities Wagering Council sends cease-and-desist letters to Kalshi (
), Polymarket and Crypto, demanding that they stop providing sports activities occasion contracts to TN clients instantly, void all pending contracts and concern refunds by Jan. 31. Lawsuits are imminent. pic.twitter.com/jDIPIwsrCn
— Daniel Wallach (@WALLACHLEGAL) January 9, 2026
“The sports activities occasions contracts provided on Kalshi’s alternate aren’t compliant with [Tennessee’s gambling] protections (and lots of others) and are a right away and vital menace to the general public curiosity of Tennessee,” reads the letter to Kalshi, with related wording for the opposite two letters. “Even when it did provide these protections, Kalshi doesn’t have the required license issued by the SWC and doesn’t pay the privilege tax mandated by statute.
“To that finish, the SWC calls for that Kalshi stop providing sports activities occasions contracts to clients in Tennessee instantly, void all pending sports activities occasions contracts that had been entered into by any particular person positioned in Tennessee, and refund all funds on deposit to any particular person positioned in Tennessee no later than January 31.”
Kalshi responds to the Tennessee resolution
Kalshi has responded to the transfer from the Tennessee Sports activities Wagering Council in a statement reported by betting analyst Invoice Sperros.
Response From @Kalshi:
“As different courts have acknowledged, Kalshi is a regulated, nationwide alternate for real-world occasions, and it’s topic to unique federal jurisdiction. It's very completely different from what state-regulated sportsbooks and casinos provide their clients.
Tennessee… https://t.co/rmUzOholOA
— Invoice Speros (@billsperos) January 10, 2026
“As different courts have acknowledged, Kalshi is a regulated, nationwide alternate for real-world occasions, and it’s topic to unique federal jurisdiction,” mentioned the prediction market operator. “It’s very completely different from what state-regulated sportsbooks and casinos provide their clients. Tennessee has nonetheless sought to control Kalshi below state legislation. It despatched us a cease-and-desist letter earlier right now, and we’ve now introduced swimsuit in federal courtroom to cease this illegal try.”
This isn’t uncommon territory for Kalshi, having filed lawsuits in different states like Connecticut to push again on similarly-minded lawsuits. Crypto.com and Polymarket have had their very own share
Readwrite has reached out to Kalshi, Polymarket, and Crypto.com for additional remark.
Featured picture: Composite picture from Kalshi, Polymarket, Crypto.com
The put up Tennessee sends cease-and-desist letters to Kalshi, Polymarket, and Crypto.com appeared first on ReadWrite.
