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Tennessee targets Kalshi, Polymarket, and certain exchange over sports betting
Source: CryptoNewsNet Original Title: Tennessee targets Kalshi, Polymarket, and Crypto.com over sports betting Original Link:
Overview
Tennessee’s Sports Wagering Committee has issued cease-and-desist orders to Kalshi, Polymarket, and a major crypto exchange. Regulators want the companies to immediately stop offering sports contracts in Tennessee.
Details
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, Polymarket, and a certain exchange, accusing the platforms of violating state gambling laws by offering sports-related contracts without authorization.
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.
Compliance Deadline
Tennessee directed each platform to halt sports contract offerings to Tennessee residents, cancel existing contracts, and refund user balances by January 31. The state also warned that continued operations could trigger escalating fines and court action.
Platform Status
Kalshi and Polymarket both operate as federally regulated prediction market platforms under CFTC oversight, enabling users to trade contracts on various real-world outcomes. The exchange in question, primarily a crypto trading platform, also offers prediction market features.