Key Takeaways
- A federal court issued a temporary restraining order in favor of Kalshi to prevent Tennessee from enforcing state gambling laws against it.
- Judge Aleta Trauger determined that Kalshi is likely to succeed on its claims and would suffer irreparable harm without the restraining order.
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A US federal judge has issued a temporary restraining order preventing Tennessee officials from enforcing state gambling laws against Kalshi, the leading prediction market platform.
The order comes after the Tennessee Sports Wagering Council (SWC) moved to block Kalshi, alongside Polymarket and Crypto.com, from offering sports contracts to residents, issuing cease-and-desist demands and warning of fines or legal action for noncompliance.
State officials contend the platforms’ offerings qualify as sports wagering and therefore require licensing, consumer protections, and tax payments under Tennessee law.
In the order issued January 12, Judge Aleta Trauger of the US District Court for the Middle District of Tennessee found that Kalshi would likely face irreparable harm if Tennessee enforced its sports wagering and gambling statutes against the company.
The order bars the SWC, its chairman and executive director, and the state attorney general from taking action against Kalshi pending a preliminary injunction hearing scheduled for January 26.
