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Tennessee sent three cease and desist letters to prediction markets, Kalshi, Polymarket and Crypto.com, demanding an immediate end to operations.
Three major prediction markets have been ordered to cease operations in Tennessee, after the Tennessee Sports Wagering Council sent cease and desist letters to Kalshi, Polymarket and Crypto.com. As gaming attorney David Wallach shared, the letters indicate that each of the three prediction markets does not comply with Tennessee laws and poses “an immediate and significant threat to the public interest of Tennessee.”
BREAKING: Tennessee Sports Wagering Council sends cease and desist letters to Kalshi (
), Polymarket and Crypto, demanding that they immediately stop offering sporting event contracts to TN customers, cancel all current contracts and issue refunds by January 31. Prosecutions are imminent. pic.twitter.com/jDIPIwsrCn
-Daniel Wallach (@WALLACHLEGAL) January 9, 2026
“Sports event contracts offered on the Kalshi exchange do not comply with the [Tennessee’s gambling] protections (and many others) and poses an immediate and significant threat to the public interest of Tennessee,” the letter to Kalshi reads, with similar wording for the other two letters. “Even if he offered these protections, Kalshi does not have the required license issued by the SWC and does not pay the privilege tax required by law.
“To this end, the SWC demands that Kalshi immediately cease offering sporting event contracts to customers in Tennessee, cancel all current sporting event contracts that have been entered into by any person located in Tennessee, and refund all funds on deposit to any person located in Tennessee on or before January 31.”
Kalshi responds to Tennessee decision
Kalshi responded to the Tennessee Sports Wagering Council’s decision in a statement reported by betting analyst Bill Sperros.
Response from @Kalshi:
“As other courts have recognized, Kalshi is a nationally regulated exchange for real-world events, and it is subject to exclusive federal jurisdiction. This is very different from what state-regulated sportsbooks and casinos offer their customers.”
Tennessee… https://t.co/rmUzOholOA
– Bill Speros (@billsperos) January 10, 2026
“As other courts have recognized, Kalshi is a nationally regulated exchange for real-world events, and it is subject to exclusive federal jurisdiction,” the prediction market operator said. “This is very different from what state-regulated sportsbooks and casinos offer their customers. Tennessee nonetheless sought to regulate Kalshi under state law. It sent us a cease-and-desist letter earlier today, and we have now filed suit in federal court to stop this illegal attempt.”
This is not unusual territory for Kalshi, who has filed lawsuits in other states like Connecticut to fend off lawsuits along the same lines. Crypto.com and Polymarket had their own share
Readwrite has contacted Kalshi, Polymarket and Crypto.com for further comment.
Featured Image: Composite image of Kalshi, Polymarket, Crypto.com
The position Tennessee Sends Cease and Desist Letters to Kalshi, Polymarket and Crypto.com appeared first on ReadWrite.
