Tennessee Clamps Down on Crypto-Linked Sports Betting Platforms

Tennessee regulators have issued cease-and-desist orders to Kalshi, Polymarket, and Crypto.com, demanding immediate termination of sports-related prediction contracts in the state. The Tennessee Sports Wagering Council alleges these platforms violated the state's Sports Gaming Act by offering unlicensed wagering products.

The January 9 directives require voiding all existing contracts with Tennessee residents and full refunds by January 31, 2026. SWC Executive Director Mary Beth Thomas characterized the platforms' operations as posing 'an immediate and significant threat to public interest.' Identical language appears in notices sent to all three firms.

This enforcement action highlights growing regulatory scrutiny of crypto-adjacent prediction markets, particularly those intersecting with traditional gambling statutes. The MOVE comes as states increasingly assert jurisdiction over digital asset platforms offering financialized versions of sports betting.