Tennessee's sports wagering regulator has issued cease-and-desist orders to three federally regulated platforms—Kalshi, Polymarket, and Crypto.com—for offering sports betting contracts that violate state laws. The firms must shut down Tennessee-based activities, refund deposits, and void open contracts by January 31. This action highlights tensions between federal oversight and state gambling regulations.
The Tennessee Sports Wagering Council (SWC), responsible for regulating online sports betting and fantasy sports in the state, has targeted Kalshi, Polymarket, and Crypto.com with formal cease-and-desist demands. These platforms, which operate under federal regulation by the Commodity Futures Trading Commission (CFTC), stand accused of breaching Tennessee's gambling laws through their sports-related event contracts.
The orders require the companies to immediately halt all Tennessee-based operations. This includes refunding user deposits and voiding any existing open contracts by January 31. No specific fines or further penalties were mentioned in the directives, but compliance is mandatory to avoid additional enforcement actions.
Kalshi and Polymarket are known for prediction markets, while Crypto.com has expanded into various crypto services, including betting options. The SWC's move underscores ongoing conflicts between state-level gambling restrictions and federal permissions for such platforms. As of now, the companies have not publicly responded to the orders.
