SWC Orders Kalshi, Polymarket, Crypto.com to Halt Bets

Crypto News Regulation

Tennessee's SWC Orders Kalshi, Polymarket, Crypto.com to Halt Bets

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 12, 2026

Key Takeaways

Tennessee’s Sports Wagering Council ordered Kalshi, Polymarket, and Crypto.com to stop unlicensed sports prediction contracts;
The SWC said only licensed sportsbooks can offer bets, requiring age checks, anti-money-laundering, and responsible gaming tools;
Platforms must refund Tennessee users by January 31, 2026, or face fines up to $25K per violation and potential legal action.

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Tennessee's SWC Orders Kalshi, Polymarket, Crypto.com to Halt Bets

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The Tennessee Sports Wagering Council (SWC) issued cease‑and‑desist letters on January 9 to three prediction‑market platforms: Kalshi, Polymarket, and Crypto.com $1.54B .

The regulator stated these platforms provided sports‑event contracts without the license required under the Tennessee Sports Gaming Act. The letters were posted on X and shared by attorney Daniel Wallach.

The SWC found these contracts allowed people to wager on sporting event results. The state said only licensed sportsbooks may offer these types of bets, and calling them "event contracts" does not avoid the law.

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According to the regulator, the platforms did not include necessary protections. Tennessee law requires licensed operators to use age verification, responsible gambling tools, and anti‑money laundering systems.

The SWC required the platforms to immediately halt sports‑related contracts for Tennessee residents. Any current contracts with users from the state must be cancelled, and user balances must be returned before January 31, 2026.

If the operators fail to comply, each violation may result in a fine of up to $25,000, as well as possible court orders or referral to law enforcement if the situation persists.

Even though the platforms have federal registration and comply with US Commodity Futures Trading Commission rules, the SWC noted that those do not override Tennessee's authority to regulate sports betting within the state.

On December 3, a legal notice from the Connecticut Department of Consumer Protection's Gaming Division ordered KalshiEX LLC, Robinhood Derivatives, LLC, and Crypto.com to stop offering sports-related event contracts. What does the letter cover? Read the full story.