BlockBeats news: On January 11, according to Coindesk, Tennessee regulators have ordered Kalshi, Polymarket, and Crypto.com to stop providing sports prediction services to residents of the state, accusing these companies of operating without the necessary licenses and violating the state's gambling laws.
These companies are currently registered with the U.S. Commodity Futures Trading Commission (CFTC) as designated contract markets, providing users with the ability to purchase contracts based on the outcomes of sporting events. However, under Tennessee's sports betting law, any entity accepting wagers on sporting events must hold a license issued by the state government.
These companies were required to cease all business activities in Tennessee by January 31, cancel pending contracts involving residents of the state, and refund all deposits. Failure to comply could result in civil penalties of up to $25,000 per violation and potential referral to criminal court for felony charges of promoting gambling with aggravating factors (a felony under state law).