Tennessee Orders Halt to Sports Contracts on Three Platforms

Tennessee's sports wagering regulator has ordered three major prediction market platforms to immediately halt operations involving sports-related contracts for state residents, escalating a nationwide debate over federal and state authority in the burgeoning industry.

The Tennessee Sports Wagering Council issued cease-and-desist letters on Friday, January 9, 2026, to Polymarket, Kalshi, and Crypto.com's Derivatives Exchange. The orders accuse the companies of operating unlicensed sports wagering in violation of the Tennessee Sports Gaming Act. Regulators directed the platforms to stop offering any sports event contracts accessible to Tennessee customers, void all pending contracts entered by state residents, and refund associated deposits by January 31, 2026.

The council argued that the platforms' offerings, which allow users to trade contracts based on the outcomes of sporting events, qualify as wagers under state law and require a license, along with compliance with consumer protection measures such as age verification for participants over 21, self-exclusion options for problem gamblers, and limits on betting amounts and time. "The sports events contracts offered on...