Tennessee Orders Kalshi, Polymarket, and Crypto.com to Halt Sports Contracts Due to Violations
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Regulatory Crackdown: The Tennessee Sports Wagering Council issued cease-and-desist orders on January 9 to Kalshi, Polymarket, and Crypto.com, demanding the cessation of sports contracts and user deposit refunds by January 31, with non-compliance risking civil penalties up to $25,000.
- Legal Compliance Risks: The companies are accused of unlawfully selling sports wagering products without state licenses, as Tennessee law mandates that any organization taking bets on athletic events must possess a state-issued license, which none of the three firms currently hold.
- Market Activity Resilience: Despite ongoing legal disputes, market activity for Kalshi and Polymarket continues to rise, with Polymarket re-entering the U.S. market after acquiring derivatives exchange QCX for $112 million, indicating resilience in challenging conditions.
- Multi-State Regulatory Pressure: Tennessee's actions are part of a broader trend, as Connecticut also issued cease-and-desist orders against these companies last year, reflecting increasing regulatory scrutiny that could impact their future operations and compliance strategies.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
