What did the Tennessee Sports Wagering Council accuse Kalshi of?

The council accused Kalshi of offering unlicensed sports wagers in violation of Tennessee laws.

Why is Kalshi suing Tennessee regulators?

Kalshi argues that Tennessee is unconstitutionally trying to ban sports event contract trading on its platform, which it claims is federally regulated.

When is the next hearing regarding Kalshi in Tennessee?

A hearing is scheduled for January 26, 2026, to decide on a preliminary injunction.

Home / Business and Economy / Tennessee Judge Halts Prediction Market Ban

Tennessee Judge Halts Prediction Market Ban

13 Jan

•

Summary

A judge blocked Tennessee regulators from banning Kalshi's prediction markets.
Kalshi argued federal law preempts state gaming regulations.
A hearing is set for January 26 on a longer-lasting injunction.

Tennessee Judge Halts Prediction Market Ban

A federal judge in Nashville has issued a temporary restraining order, halting Tennessee gaming regulators from prohibiting prediction markets operator Kalshi from offering its event contracts within the state. U.S. District Judge Aleta Trauger’s order, dated January 13, 2026, prevents the Tennessee Sports Wagering Council and the state's attorney general from enforcing gaming and sports wagering laws against Kalshi.

The company had sought this order after receiving a cease-and-desist letter on January 10, 2026, from the council, which regulates sports wagering in Tennessee. The council accused Kalshi of operating an illegal gambling enterprise and threatened civil and criminal penalties. Kalshi argues that Tennessee is unconstitutionally attempting to ban its sports event contract trading, a market exclusively regulated by the federal Commodity Futures Trading Commission (CFTC).