The Tennessee Sports Wagering Council (SWC) has issued a series of cease-and-desist orders to major prediction markets platforms operating in the state.
Kalshi, Polymarket and Crypto.com have all been ordered by the SWC to stop offering sports event contracts in the Volunteer State.
Cease-and-desist letters were sent personally to Kalshi CEO Tarek Mansour and to Crypto.com chief compliance officer and chief regulatory officer Kevin J Dan.
The regulator attests that taking trades on sports events contracts constitutes a form of sports betting, and that any entity which “accepts a sum of money risked on the outcome of a sporting event without a valid licence issued by the SWC” is in violation of the Tennessee Sports Gaming Act.
The letters stated: “The sports events contracts offered on (the relevant prediction markets platform’s) exchange are wagers under the [Tennessee Sports Gaming] Act and are being offered illegally in violation of Tennessee law and regulations.
“The Tennessee Legislature has put in place many laws and regulations which licensees must comply with that are designed to protect the public interest of Tennessee.
“The sports event contracts offered on (the relevant prediction markets platform’s) exchange are not compliant with these protections (and many others) and are an immediate and significant threat to the public interest of Tennessee.
“Even if it did offer these protections, (the relevant prediction markets platform) does not have the required licence issued by the SWC and does not pay the privilege tax mandated by statute.”
BREAKING: Tennessee Sports Wagering Council sends cease-and-desist letters to Kalshi (
), Polymarket and Crypto, demanding that they cease offering sports event contracts to TN customers immediately, void all pending contracts and issue refunds by Jan. 31. Lawsuits are imminent. pic.twitter.com/jDIPIwsrCn
— Daniel Wallach (@WALLACHLEGAL) January 9, 2026
In addition to the respective order to shutter operations, the SWC is also demanding that the trio void any pending sports event contracts that were entered into, while also refunding customer deposits in the state.
The regulator noted that failure to comply could lead to fines of $10,000 for the first offence, $15,000 for the second offence and $25,000 for a third or subsequent offence, as well as “injunctive relief, and a referral to law enforcement if the platforms did not meet their demands”.
All three companies have been given until 31 January 2026 to meet the regulator’s demands.
Tennessee follows in the footsteps of Connecticut, which sent similar cease-and-desist orders to Kalshi, Robinhood and Crypto.com last month.
Kalshi was also handed a cease-and-desist order in New York, prompting the platform to file a lawsuit against the New York State Gaming Commission in October.
Regulators in Maryland, Nevada and Massachusetts also warned operators against involvement with prediction markets platforms towards the end of last year.
The post Tennessee sends cease-and-desist orders to prediction markets trio first appeared on EGR Intel.
Kalshi, Polymarket and Crypto.com all ordered to shutter operations and refund customer deposits in the Volunteer State
The post Tennessee sends cease-and-desist orders to prediction markets trio first appeared on EGR Intel.