Tennessee Demands That Polymarket, Kalshi and Crypto.com End Sports Prediction Markets
Tennessee’s sports betting regulator has ordered prediction market platforms Polymarket, Kalshi, and Crypto.com to stop offering sports-related wagers to state residents and refund pending bets, threatening fines for noncompliance. The platforms maintain their sports markets are federally regulated, not subject to state-level sports betting rules, and have continued operations in Tennessee and other states that have attempted similar bans, such as Illinois, Connecticut, and Michigan. Major platforms like Kalshi have seen significant trading volumes, with over $23.8 billion in sports-related bets last year, making up the bulk of their business. Tennessee’s regulators criticized the platforms for not instituting gambling safeguards such as age verification, self-exclusion lists, and betting limits. Ongoing legal disputes between state authorities and these companies have resulted in both government and industry lawsuits, likely setting the stage for Supreme Court involvement to resolve the uncertain regulatory status of sports prediction markets.
