Tennessee Judge Grants Preliminary Injunction, Prohibiting State from Enforcing Gambling Laws Against Kalshi

Odaily News According to reports, a federal judge in Tennessee, USA, has approved a preliminary injunction motion from prediction market platform Kalshi, prohibiting state officials from enforcing state gambling laws against its sports event contracts. The judge believes that Kalshi's sports event contracts have a high probability of being classified as swaps under federal commodity law, which could lead to federal law preempting state-level regulations.

Previously, Tennessee regulators had issued a cease-and-desist letter to Kalshi, threatening that its operation without a state license violated the "Tennessee Sports Gambling Act."

Attorney Andrew Kim commented on platform X that this ruling diverges from a ruling 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 as commodity derivatives. (The Block)