The U.S. state of Tennessee has requested platforms such as Kalshi and Polymarket to cease offering sports event prediction services to residents of the state.

Coindesk reported on January 11 that Tennessee’s regulatory agency has ordered Kalshi, Polymarket, and Crypto.com to stop offering sports event prediction services to state residents, citing unlicensed operations in violation of the state’s gambling laws. The firms are currently registered with the U.S. Commodity Futures Trading Commission (CFTC) as designated contract markets, allowing users to buy contracts tied to sporting event outcomes. However, Tennessee’s “Sports Gaming Act” requires any entity accepting sports bets to hold a license issued by the state government. The companies were instructed to cease all Tennessee operations by Jan. 31, cancel any outstanding contracts with state residents, and refund all deposits. Non-compliance could lead to civil penalties of up to $25,000 per violation, plus potential criminal court referral for aggravated gambling promotion — a felony under Tennessee law.