2026-01-12 21:41:03

Tennessee Takes Stance Against Sports Prediction Markets, Pressures Polymarket and Kalshi

Tennessee is making waves in the prediction market space. The state has formally demanded that Polymarket, Kalshi, and other similar platforms cease their sports prediction market operations within its jurisdiction. This move reflects growing regulatory scrutiny around prediction markets—a sector that has been gaining traction in the crypto and Web3 communities but now faces pushback from state authorities.

The pressure from Tennessee highlights the ongoing tension between emerging financial platforms and traditional regulatory frameworks. While prediction markets have attracted significant user interest and investment, state governments are increasingly questioning whether these platforms operate within established legal boundaries. Polymarket and Kalshi, two of the more prominent players in this space, now find themselves at the center of this regulatory challenge.

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StealthDeployer

· 16h ago

Here we go again, US states are starting to clamp down on prediction markets... Isn't this just their usual tactic? Regulations are getting stricter and stricter. Poly and Kalshi need to be careful this time. Tennessee's move was so quick? It seems other states will follow soon. It's already impressive to have survived this long, although we knew it was only a matter of time. Honestly, it's still old money causing trouble, afraid of being replaced. That's why multi-chain deployment is necessary; relying on a single point is too risky. Let's wait and see how it evolves... Everyone who can operate is thinking about how to diversify risk. US regulation is really the killer app for prediction markets. Compliance costs are too high; small platforms are simply out of business. It's a bit frustrating; it seems like many will be wiped out this wave. Will Tennessee's decision become a domino effect?

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GrayscaleArbitrageur

· 23h ago

Another state wants to intervene, it's really hard to guard against everything Poly and Kalshi are probably going to get hammered this time These US state governments love to regulate prediction markets, but they just can't do it well Where else can it be used? Restrictions are increasing Regulation is really like whack-a-mole, press down one and another pops up So, is it that easy for the crypto world to be targeted? Tennessee is probably jealous of Polymarket making money There's too much profit in prediction markets, no wonder the government can't stay still They're changing the rules again, so troublesome That's why I say US regulation is too fragmented, each state doing its own thing When regulation comes, who will still dare to play?

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Degen4Breakfast

· 01-14 01:49

Here we go again, is the state government starting to regulate prediction markets? --- Polymarket and Kalshi are under scrutiny, this is not as simple as it seems. --- Haha, this is what they call regulation pressure, we've seen it coming. --- Sports prediction markets are banned? That's hilarious. One side bans it, and another opens up a new one. --- Tennessee has taken action. It feels like this wave of regulation has just begun. --- State governments vs. emerging platforms, always the eternal conflict. --- Same old story, the traditional framework can't keep up with crypto innovation. --- How will Polymarket respond? I'm really curious to see. --- Basically, it's just about not allowing profit-making, old tricks. --- Prediction markets have always had gray areas; being targeted was only a matter of time.

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LiquiditySurfer

· 01-13 15:14

Ha, it's another classic showdown between the traditional financial system and permissionless finance. Tennessee's move is indeed a bit harsh... Polymarket and Kalshi's LP yields probably can't withstand this wave of impact. --- Prediction markets are fundamentally about providing liquidity depth. When a state government applies pressure, the entire on-chain behavior pattern has to be reconstructed. I've seen this routine many times in traditional derivatives markets. --- Surfing is risky, and encountering regulation makes it even riskier... No matter how solid your market-making skills are, you still have to respect the law's Martini indicator. --- Is Tennessee trying to push Polymarket towards Hong Kong/Singapore? This guy's arbitrage opportunities are really numerous. --- Ultimately, it's the unresolved contradiction between liquidity efficiency and regulatory frameworks. Permissionless doesn't mean bottomless; you need to see where the line is.

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ser_ngmi

· 01-12 22:11

No way, Tennessee is causing trouble again? These traditional regulators just can't stand us making money. Polymarket is about to get hammered? Been waiting for this day, haha. Here we go again... State government vs Web3, when will this drama ever end? Damn, sports prediction markets are under scrutiny, is the next one futures? Tennessee really treats prediction markets as a flood beast, hilarious. Regulatory pressure is coming down again, brothers should consider fleeing. Kalshi is probably going to bleed this time, gg. Honestly, regulatory pressure is really annoying, but it also shows that the market is indeed hot. It's not me saying this, the more pressure US state governments put, the more valuable this stuff is. People in Tennessee are no longer allowed to play, so we need to quickly buy the dip.

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ProposalManiac

· 01-12 22:11

Here comes the old script again: "If I don't understand you, you have to stop," with the state government starting to regulate the efficiency show when it can't crush centralized exchanges... --- The internal system's game theory balance argument is reappearing here. Polymarket should have designed a layered risk isolation mechanism long ago; only now is it being forced to do so. --- Tennessee's move is actually a chess game. It seems that the regulation is trying to争夺 the discourse power over pricing... It's quite interesting. --- All the lessons from history are right here. The more you try to cut everything with a single stroke, the more likely you are to push opponents into incentive-compatible countermeasures. --- Basically, no one has provided the state government with a clear proposal to help them understand how this thing works. Regulation under information asymmetry is always the most aggressive. --- Kalshi should have foreseen this situation. There should be corresponding risk buffering designs on-chain.

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GetRichLeek

· 01-12 22:09

Another ban, this time it's the prediction market. The tricks used by the whales are really clever. Polymarket and Kalshi are about to be shut down by Tennessee. We haven't even fully analyzed the on-chain data, and the regulators are already here. Basically, they're afraid that we can make money by bottom fishing through prediction markets. Traditional finance can't beat us. We should have been alert long ago. Most of these innovative projects end up falling into the hands of regulators. The chips I had previously bet on... never mind, I won't say more. Oh my God, I just started paying attention to the prediction market less than two weeks ago, and now I have to leave. Truly the king of FOMO. With such fierce regulation, can prediction coins still rise? It depends on technical support; otherwise, there will be another bloodbath.

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ArbitrageBot

· 01-12 21:59

Here we go again, the state government is starting to crack down, this time it's Tennessee. Why are polymarket and kalshi caught in the crossfire again? Regulation is really a one-size-fits-all approach. Can't they just give innovation some breathing room? Honestly, it's still about people making money. The anxiety of traditional finance is written all over their faces. This is just the beginning. More states will follow suit, but once you go decentralized, you can't really shut it down. With such low entry barriers now, why not just use VPNs or channels in a few more states... I really don't understand why prediction markets are targeted. There are many products even crazier than this.

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StablecoinGuardian

· 01-12 21:50

Here we go again, the state government is starting to intervene. This time, Tennessee is targeting Polymarket. Is it really that hard to operate Polymarket... Just a few months and it's hammered again. Honestly, regulation in the US is really a mess, with each state doing its own thing. But on the other hand, these prediction markets are indeed a gray area. Is Tennessee trying to pass legislation or just outright ban it? I really don't understand. It's the same old story—new things come out, and they say it's illegal, claiming it's "to protect consumers." If this continues, prediction markets in the US will have a tough time.

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MEVVictimAlliance

· 01-12 21:48

Another state is about to crack down on prediction markets, this time Tennessee. Polymarket and Kalshi are again in trouble. The government is always trying to regulate this and that. Web3 is really too difficult. Why is Tennessee so aggressive... Are they just so afraid of us making money? I still haven't figured out the logic behind regulating this stuff. Anyway, the rules are different in every US state. So annoying. As expected, traditional financial systems have never been soft on us. That's why we need decentralization, or we could be shut down at any moment by a government order. Polymarket and Kalshi should really consider relocating now. This is the policy environment in the US. Thinking back to those projects that were shut down before, prediction markets are indeed easy targets. Regulation is coming, and the price of coins is going to drop again. Forget it, I'll sell half of my holdings first.

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