The Tennessee Sports Wagering Council (SWC) has mandated that platforms Kalshi, Polymarket, and Crypto.com cease their offering of sports event contracts to state residents. This order follows cease-and-desist letters issued on Friday, where the SWC contended that these companies were engaging in illegal sports wagering activities without the necessary state licenses as outlined in the Tennessee Sports Gaming Act.
According to the SWC, the platforms' sports event contracts enable users to place bets on the outcomes of sporting events, which is a privilege reserved for licensed sportsbooks in Tennessee. The regulator emphasized that labeling these products as “event contracts” does not exempt them from state laws governing gambling. Additionally, the SWC highlighted the lack of consumer protections, such as age verification and anti-money laundering measures, which are mandated for licensed operators.
As part of the order, the companies must halt all sports-related contracts, void existing agreements made by Tennessee users, and issue refunds for all deposits by January 31, 2026. Noncompliance may lead to fines of up to $25,000 per violation and potential legal action for continued infractions. Despite Kalshi and Polymarket's federal oversight, the SWC asserted its right to regulate gambling activities within the state.