Tennessee Regulators Crack Down: Kalshi, Polymarket, and Crypto.com Ordered to Halt Sports Betting

Financial regulators in Tennessee have issued cease-and-desist orders to three prominent platforms—Kalshi, Polymarket, and Crypto.com—demanding an immediate halt to all sports betting contracts offered within the state. The action targets what authorities classify as illegal gambling products, specifically event-based prediction markets and crypto-related betting offerings. This regulatory move underscores the ongoing legal scrutiny facing the intersection of cryptocurrency, prediction markets, and gambling laws in the United States. The order signals a significant compliance challenge for platforms operating in the gray areas of financial and gaming regulation, potentially impacting user access and market operations in Tennessee.