Judge Halts Tennessee Order Against Kalshi Sports Contracts

A federal judge temporarily blocked Tennessee’s cease-and-desist order against Kalshi’s sports contracts, impacting regulation in Nashville on January 9, 2026.

The ruling may set a precedent for state versus federal authority in prediction markets, affecting jurisdiction claims and regulatory approaches.

A federal judge halted Tennessee’s order against Kalshi’s sports contracts on November 10, 2023, issued by Tennessee’s Sports Wagering Council.

This decision underscores a legal challenge between state and federal oversight, with implications for regulated prediction markets.

Federal Court Issues Temporary Restraining Order

The court issued a temporary restraining order delaying Tennessee’s actions against Kalshi, citing likely success of Kalshi’s defense. “Kalshi is likely to win the case,” as stated in the temporary restraining order issued by the federal district judge: Law360. The restraining order is set to remain until further court decisions.

Kalshi, a platform offering event contracts on sports outcomes, operates under CFTC regulations. Tennessee’s order questioned compatibility with state betting laws, igniting this legal standoff.

Kalshi Operations Continue Amid State-Federal Tensions

This ruling allows Kalshi to continue its operations without immediate disruption. It reflects ongoing tensions between state and federal jurisdictions in regulating financial markets.

The financial and political landscapes are observing the implications closely, particularly regarding how state authority interacts with federally-regulated markets.

Mirroring Nevada’s 2025 State Rights Ruling

This case mirrors previous instances, like Nevada’s 2025 ruling supporting state rights in similar contexts. Such past events highlight the complex interplay of legal standings in prediction markets.

Potential outcomes depend on judicial interpretations of regulatory scopes, influencing future market frameworks and state-federal legal relations.