Kalshi prevails in early legal round against Tennessee gambling regulator
A federal judge blocked Tennessee's regulator from enforcing a cease-and-desist order against Kalshi, offering the platform temporary relief in its legal battle.Summary
A federal judge in Tennessee has temporarily blocked the state’s gambling regulator from enforcing a cease-and-desist order against Kalshi, an event contract platform. Judge Aleta Trauger granted Kalshi’s request for a preliminary injunction, citing potential “irreparable injury and loss” if enforcement proceeded, and stating the firm is “likely to succeed on the merits” of its claims. The dispute arose after Tennessee regulators ordered Kalshi, Polymarket, and Crypto.com to halt sports-related contracts and refund deposits, alleging unlicensed sports wagering. Kalshi argues its operations fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gambling agencies, asserting its markets are federally regulated financial instruments. Similar lawsuits are ongoing in other states, with mixed results – temporary injunctions granted in Nevada and New Jersey, but denied in Maryland. Despite legal challenges, Kalshi has secured significant funding, totaling $485 million from investors like Andreessen Horowitz and Sequoia Capital.
(Source：Invezz)