Tennessee in the United States has ordered platforms like Kalshi and Polymarket to cease offering sports event prediction services to residents of the state.

On January 11, according to Coindesk, Tennessee regulators ordered Kalshi, Polymarket, and CEX to cease offering sports betting prediction services to residents of the state and accused these companies of operating without the necessary licenses, violating the state’s gambling laws. These companies are currently registered with the (CFTC) as designated contract markets, providing users with the ability to purchase contracts based on the outcomes of sporting events. However, under Tennessee’s Sports Gaming Act, any entity accepting bets on sporting events must hold a license issued by the state government. These companies are required to stop all business activities in Tennessee by January 31, cancel outstanding contracts involving residents of the state, and refund all deposits. Non-compliance may result in civil fines of up to $25,000 per violation and could be referred to criminal court for aggravated gambling promotion, which is a felony under state law.