Tennessee Investigates Kalshi, Polymarket and Crypto.com Over Sports Contracts
On Jan. 11, 2026, Tennessee regulators told Kalshi, Polymarket and Crypto.com to stop offering or facilitating any sports contract–related activity within the state. The directive affects crypto-linked sports contracts and prediction markets, and comes as state authorities step up scrutiny of novel betting products that blend derivatives, gaming and digital assets. Companies named in the order must pause relevant services for Tennessee users while the regulator reviews compliance and legal status.
The action matters because it signals stronger state-level enforcement against platforms that straddle financial and gaming rules, and could curb access and liquidity for affected markets in a key U.S. state. Users in Tennessee may see halted markets and withdrawal friction, and other states could follow suit or clarify rules for crypto-native betting products. Firms will likely weigh legal challenges or seek licensing pathways as regulators push for clearer oversight.