Tennessee has ordered prediction market platforms Kalshi, Polymarket, and Crypto.com to stop offering sports event contracts to residents. The companies must cease operations, void existing contracts, and issue refunds by Jan. 31, 2026, or face fines of up to $25,000 per offense. The regulator emphasized the lack of consumer protection measures on the platforms.

The Tennessee Sports Wagering Council (SWC) accused Kalshi, Polymarket, and Crypto.com of illegal sports wagering without a license. The platforms’ offerings allow users to bet on sporting events, violating state gambling laws. Despite being registered with the CFTC, the SWC maintains Tennessee’s authority to regulate sports wagering within its borders. Referrals to law enforcement are possible for noncompliance.

A federal judge has temporarily blocked Connecticut regulators from enforcing a cease-and-desist order against Kalshi. The legal dispute centers on whether Kalshi’s event contracts fall under federal commodities law or state gambling statutes. The case adds to a broader legal battle between Kalshi and state regulators in various states, with lawsuits filed in New York, Massachusetts, New Jersey, Nevada, Maryland, and Ohio.

Read more at Cointelegraph: Tennessee Orders Kalshi, Polymarket, Crypto.com to Halt Sports Betting