Kalshi has secured a temporary restraining order allowing the company to continue providing its sports event contracts in Tennessee.
The temporary restraining order was granted on Monday (Jan. 12) in response to a cease-and-desist letter from the Tennessee Sports Wagering Council.
The action by the Council aimed to prevent Kalshi and other prediction market operators from offering sports event contracts in the state.
Tennessee has a regulated sports betting market, and sports event contracts are considered illegal gambling under state gambling laws.
In granting the temporary restraining order against the Tennessee Sports Wagering Council, District Court Judge Aleta A.Trauger noted that plaintiff Kalshi is likely to succeed on the merits of its claims and its rights will likely be violated by the Council through the enforcement of pre-empted state laws.
The temporary restraining order prevents the Council from enforcing the Tennessee Sports Gaming Act against Kalshi, pending a hearing on Kalshi’s request for a preliminary injunction.
The preliminary injunction hearing is scheduled for January 26.
The action by the Tennessee Sports Wagering Council also targets prediction market operators Crypto.com and Polymarket.
The crackdown on sports event contracts comes two weeks after Attorney General Jonathan Skrmetti halted the operation of multiple illegal online sweepstakes casinos in Tennessee.
According to AG Skrmetti, the promotional sweepstakes model used by these casinos constitutes an illegal lottery prohibited by the Tennessee Constitution and violates Tennessee gambling and consumer-protection laws.