Tennessee Takes Aim at Crypto Sports Betting

Tennessee is cracking down on three platforms offering sports betting through crypto. Kalshi, Polymarket, and Crypto. com have been told to stop their sports event contracts in the state. The Tennessee Sports Wagering Council (SWC) says these platforms are breaking the law by not having a license. The SWC argues that these platforms let people bet on sports outcomes, which is something only licensed sportsbooks can do in Tennessee. They also point out that these platforms don't have the same protections for users as licensed operators, like age checks and tools to prevent problem gambling. The platforms have been told to stop offering these contracts to people in Tennessee and to refund all the money by the end of January 2026. If they don't, they could face fines of up to $25, 000 for each violation. The SWC also warned that they might take legal action or report the platforms to law enforcement.Even though Kalshi and Polymarket are registered with a federal agency, the SWC says that doesn't matter. Tennessee has its own laws about sports betting, and these platforms need to follow them. This isn't the first time Kalshi has faced legal trouble. Last month, a federal judge temporarily blocked Connecticut from enforcing a similar order against them. Kalshi argued that its contracts are regulated by federal law, not state law. The judge agreed to pause enforcement while the court considers Kalshi's request for a preliminary injunction. Kalshi isn't backing down. They've sued regulators in several other states, arguing that their contracts are legal under federal law. This fight is far from over.