Nashville, TN – The Tennessee Sports Wagering Council (“SWC”) has issued formal cease-and-desist orders to the online prediction market platforms Kalshi, Polymarket, and Crypto.com, requiring them to immediately suspend sports-related event contracts offered to Tennessee residents.
The orders further direct the platforms to void all existing contracts and refund customer funds by January 31, 2026. This action reflects Tennessee’s position that platforms offering markets tied to athletic outcomes must comply with applicable state gaming and consumer protection laws.
Concerns within the horse racing industry regarding the legality and potential impact of prediction markets have intensified in recent months. Industry officials warn that such platforms may circumvent state-based regulatory and tax frameworks that support racing and Advance Deposit Wagering (ADW) operators. They also raise concerns that prediction markets introduce products that resemble traditional betting but operate under a less restrictive regulatory regime, creating potential integrity and consumer protection risks. As a result, established gaming and racing operators have publicly expressed caution—and, in some cases, opposition—to the expansion of prediction markets into the broader regulated gaming ecosystem, including areas traditionally served by ADW companies.
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