Tennessee Regulators Issue Cease-and-Desist Letters to Kalshi, Polymarket, Crypto.com
Kalshi, Polymarket and Crypto.com Receive Cease-and-Desist Letters From Tennessee Regulators
Tennessee regulators have issued cease-and-desist letters to Crypto.com, Kalshi, and Polymarket, targeting offerings that the state views as falling under its sports betting oversight.
The letters were issued by Tennessee’s sports betting regulator, marking another high-profile move by a state authority against prediction market-style products and related “event contracts.”
The action adds to a growing nationwide dispute between state gambling regulators and platforms that describe their products as federally regulated events contracts. At the center of the clash is a jurisdictional question: whether these products should be treated like sports betting and regulated at the state level, or handled under federal frameworks that cover event-based contracts exchanges.
While the cease-and-desist letters do not resolve that broader regulatory tension on their own, they underscore increasing scrutiny of prediction markets and similar offerings as they expand and attract mainstream attention.
