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Prediction Market Kalshi Wins Temporary Restraining Order in Tennessee

3 months ago
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Source: Bookies.com

TL;DR

Prediction market Kalshi secured a temporary restraining order from a U.S. District Judge in Tennessee, allowing it to continue offering sports event contracts while its legal battle with the Tennessee Sports Wagering Council proceeds.

Prediction market Kalshi scored its first legal victory of 2026 when U.S. District Judge Aleta Trauger granted the platform a temporary restraining order in its battle with state gaming regulators. The order allows the platform to continue trading sports events contracts while its legal case against the Tennessee Sports Wagering Council continues. The state gaming regulatory body had sent 'cease-and-desist' letters to Kalshi, Polymarket, and crypto.com, demanding that the platforms stop offering sports-related trades in Tennessee and refund all deposits by January 31. The state argued that Kalshi and the other top prediction markets violated state gaming laws by illegally accepting sports bets despite having federal regulatory approval. In issuing her temporary restraining order, Judge Trauger wrote that Kalshi is 'likely to succeed on the merits of its claim.' She added its rights would be violated and that Kalshi would suffer 'irreparable injury' if the cease-and-desist order was enforced prior to a hearing on a preliminary injunction. A hearing has been scheduled for Monday, January 26, at 5 p.m. local time. At the center of every case is the same question: who's in charge? Kalshi maintains its contracts fall exclusively under the authority of the CFTC, arguing that federal oversight preempts state gambling laws. State regulators largely disagree — and courts so far have offered no uniform answer.

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