SEC Blocks Tennessee Action Against Kalshi

Federal Court Temporarily Blocks Tennessee’s Action Against Kalshi

• A federal court issued a temporary restraining order in favor of Kalshi, a leading prediction market platform, against Tennessee’s enforcement of state gambling laws.
• Judge Aleta Trauger found that Kalshi is likely to succeed on its claims and would suffer irreparable harm without the restraining order.
• The order prevents the Tennessee Sports Wagering Council (SWC) and state officials from taking action against Kalshi until a preliminary injunction hearing on January 26.
• The SWC had previously moved to block Kalshi, Polymarket, and Crypto.com from offering sports contracts to residents, citing the need for licensing under state law.

A US federal judge has temporarily blocked Tennessee from enforcing its gambling laws against Kalshi. This decision protects the platform pending further legal proceedings scheduled for January 26.