Tennessee just stepped into the center of the prediction market debate — and it’s making waves.
The state issued cease-and-desist orders to Polymarket, Kalshi, and Crypto.com’s Nadex, demanding they halt sports event contracts and refund all Tennessee users by January 31. It’s a bold move that highlights a growing tension: federal regulators say these platforms can operate nationwide, while states insist they fall under gambling laws.
What’s striking is how fast this space is evolving. Prediction markets have surged in popularity, especially as more people use them to track elections, sports, and geopolitical events. Now regulators are rushing to catch up — and sometimes colliding along the way.
With Tennessee threatening fines and even criminal referrals, and Kalshi already challenging the order in federal court, this battle is far from over. The decisions made in the coming months could decide how — or if — prediction markets operate across the U.S. in the future.