Tennessee Regulator Sends Cease-And-Desist Letters to Crypto.com and Prediction Markets Over Unlicensed Operations
Tennessee Regulator Sends Cease-And-Desist Letters to Crypto.com and Prediction Markets Over Unlicensed Operations
Tennessee's sports betting regulator has issued cease-and-desist letters to three major prediction market platforms: Polymarket, Kalshi, and Crypto.com. The platforms are accused of violating state gambling laws by operating in Tennessee without the required licenses, focusing attention on the regulatory landscape for event contract exchanges.
Tennessee Cracks Down on Unlicensed Prediction Markets
In a significant regulatory move, the Tennessee sports betting regulator has ordered Polymarket, Kalshi, and Crypto.com to cease offering sports betting contracts within the state. This action brings a sharp focus to the evolving regulatory landscape surrounding event contract exchanges and digital betting platforms. The state agency has accused all three platforms of operating in Tennessee without the necessary licenses, a direct violation of state gambling laws. The cease-and-desist letters highlight a growing trend of state-level authorities scrutinizing crypto-related businesses and prediction markets for compliance with existing financial and gambling regulations. Companies operating in this space face increasing pressure to adhere to local licensing requirements to avoid penalties, including potential fines.