Tennessee judge approves preliminary injunction blocking the state from enforcing gambling laws against Kalshi

2026-02-20 08:51:18

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Odaily Planet Daily reports that a federal judge in Tennessee has granted a preliminary injunction motion against prediction market platform Kalshi, prohibiting state officials from enforcing state gambling laws on its sports event contracts. The judge believes that Kalshi’s sports event contracts are highly likely to be classified as swaps under federal Commodity Exchange Act, which could prioritize federal law over state regulations.

Previously, Tennessee regulators issued a cease and desist order to Kalshi, threatening to halt its operations for operating without a state license, violating the Tennessee Sports Gaming Act.

Attorney Andrew Kim commented on X that the ruling differs from the decision in Nevada. Earlier this week, the CFTC filed an amicus brief in a related case involving Crypto.com and Nevada, asserting its exclusive jurisdiction over prediction markets and event contracts that are considered commodity derivatives. (The Block)

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