Tennessee Does Not Want Prediction Market Betting in State

Following in the footsteps of a handful of other US states, Tennessee regulators expressed their displeasure with the idea of prediction markets like Kalshi operating in the Volunteer State.

“We are writing to express our concerns with the sports event contracts currently being offered in Tennessee by Commodity Futures Trading Commission regulated entities,” the letter read. “We believe that these sports event contracts are Wagers under the (Tennessee Sports Gaming Act) and are being offered in violation of Tennessee law and regulations.

“As the Commission reviews these sports events contracts, we ask that you respect the policy decisions made by the Tennessee Legislature and not permit the offering of sports events contracts.”  

Tennessee regulators did not send out cease and desist letters to Kalshi, however.

Nevada and New Jersey did send out cease and desist letters.  Kalshi responded with lawsuits of their own.

U.S. District Court Judge Andrew P. Gordon issued a minute order Tuesday that granted, in part, Kalshi’s motion for a temporary retraining order and preliminary injunction.

The judge also denied the Nevada Gaming Commission’s counterclaims, which sought an immediate temporary restraining order and preliminary injunction that would have prohibited Kalshi from continuing to offer sports event contracts in Nevada.

A written ruling with more detail will come later, but the decision means Kalshi can continue operating its sports event contracts in Nevada while the case gets litigated—at least for now.

“Today, the Federal Court in Nevada granted Kalshi’s preliminary injunction and blocked the State from trying to prevent Kalshi from offering prediction markets,” a Kalshi spokesperson told Front Office Sports. “We are grateful for the court’s careful attention to this matter and recognition of Kalshi’s status as a CFTC-regulated exchange. On to the next step.”