Federal Judge Temporarily Halts Tennessee's Bid to Shut Down Kalshi Sports Contracts

2026-01-13 05:20:10

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Source: CryptoNewsNet Original Title: Federal judge temporarily halts Tennessee’s bid to shut down Kalshi sports contracts Original Link: https://cryptonews.net/news/legal/32266469/ A federal judge has temporarily blocked Tennessee state regulators from enforcing a cease-and-desist order against prediction market operator Kalshi, dealing an early setback to one of the most aggressive state crackdowns yet on sports-based event contracts.

On Monday, U.S. District Judge Aleta Trauger granted Kalshi a temporary restraining order preventing the Tennessee Sports Wagering Council and the state attorney general from enforcing state sports betting and gambling statutes against the company while the case proceeds.

Kalshi is likely to succeed on the merits of its claims and would suffer irreparable harm if the state were allowed to move forward with enforcement, the ruling stated.

This order comes just days after Tennessee regulators ordered Kalshi, Polymarket, and a certain major crypto platform to stop offering sports event contracts to state residents, void open contracts, refund customer deposits, and shut down in-state activity by Jan. 31. The regulator warned that failure to comply could result in civil penalties of up to $25,000 per violation and potential criminal referrals for aggravated gambling promotion.

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