Tennessee Sports Wagering Council Issues Cease-and-Desist Orders to Kalshi, Polymarket, and Crypto.com

PermabullPete · 2026-01-10T20:20:23+00:00

The Tennessee Sports Wagering Council has issued cease-and-desist orders to Kalshi, Crypto.com, and Polymarket for allegedly offering unauthorized sports betting contracts, violating state laws. These platforms must stop operations, cancel contracts, and refund users by January 31.

PermabullPete

2026-01-10 20:20:23

Abstract generation in progress

Source: CryptoBriefing Original Title: Tennessee targets Kalshi, Polymarket, and Crypto.com over sports betting Original Link:

Overview

The Tennessee Sports Wagering Council (SWC), which oversees the regulation and licensing of online sports betting and fantasy sports, has issued formal cease-and-desist demands to Kalshi, Crypto.com, and Polymarket. These platforms stand accused of violating state gambling laws by offering sports-related contracts without authorization.

Regulatory Action Details

The regulator contends that allowing users to risk money on the outcome of sporting events meets the statutory definition of sports wagering, regardless of whether the products are described as prediction markets or derivatives.

According to the letters, operating such products in Tennessee requires a state license and compliance with consumer-protection and tax obligations, which the council says the companies lack.

Tennessee directed each platform to:

Halt sports contract offerings to Tennessee residents
Cancel existing contracts
Refund user balances by January 31

The state also warned that continued operations could trigger escalating fines and court action.

Platform Context

Kalshi and Polymarket both operate as federally regulated prediction market platforms under CFTC oversight, enabling users to trade contracts on various real-world outcomes. Crypto.com, primarily a crypto exchange, also offers prediction market features.

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MEVVictimAlliance

· 44m ago

Here we go again, regulatory authorities are starting to crack down on gambling-related products. I've known for a while that these prediction markets would eventually come under scrutiny, but I didn't expect Tennessee to act so quickly. Kalshi and Polymarket still dare to be so brazen—really... they haven't fully understood the meaning of "compliance" yet, haha.

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WenAirdrop

· 01-10 20:49

Here we go again, regulatory authorities love this approach. Tennessee is once again targeting crypto platforms, it's really speechless that Kalshi and Polymarket are under scrutiny. Really? Sports betting also needs to be interviewed, US regulators are just so meddlesome. Is Kalshi about to get another fine... it’s always these few platforms that are "on the radar." Wasn't it agreed to be compliant? Why is it still impossible to avoid a cease-and-desist order? The US is really incredible. Polymarket: I just run a prediction market, why am I caught in the crossfire? With this level of regulatory pressure, crypto is becoming increasingly difficult to operate in the US. Is Tennessee suppressing or truly regulating? I find it hard to understand the tactics of these agencies.

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BlockTalk

· 01-10 20:49

Here we go again, the regulatory iron fist is hitting these platforms... Is Tennessee serious this time? Do Kalshi and Polymarket still dare to stand their ground?

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RetailTherapist

· 01-10 20:47

Here we go again, the regulators really make it hard to operate. Now Kalshi and Polymarket are also under scrutiny? --- Wow, Tennessee acted so quickly. How do these platforms still dare to touch the US market... --- I've been saying for a long time that sports betting is too sensitive here in the US. Now it's clear, huh? --- I just want to ask, when will there be clear rules? Constantly messing around like this, who dares to play? --- Tennessee SWC's move was ruthless. It seems more states will follow suit... --- Offshore platforms can no longer hold up. Are they trying to push everything onto the chain?

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StakeOrRegret

· 01-10 20:33

The big stick of regulation has started to swing, and this time it's Tennessee causing trouble... It's again prediction markets like Kalshi and Polymarket, really caught in the crossfire.

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