Tennessee Orders 3 Platforms to Stop Offering Sports Betting

The State of Tennessee has ordered three companies to immediately cease sports betting operations in the state. The Tennessee Sports Wagering Council (SWC) sent cease-and-desist letters earlier this month to Kalshi, Polymarket, and Crypto.com.

The SWC regulates Tennessee sports betting and oversees licensing for legal sports betting apps operating in the state.

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Cease-and-Desist Orders and Compliance Requirements

According to the letters, the companies were instructed to stop offering sports betting in Tennessee immediately. The Tennessee Sports Wagering Council also ordered the platforms to void all bets placed by Tennessee residents and refund deposits made by in-state users by January 31, 2026.

The council stated that failure to comply could result in enforcement actions, including fines and potential court intervention.

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Must be 21+ to participate. T&Cs Apply. Play Responsibly. Gambling problem? Call 1-800-GAMBLER (CO, DC, IL, KY, LA, MD, MS, NJ, OH, PA, VA, WV, WY), Call 1-800-9-WITH-IT (IN), Call 877-8-HOPENY or text HOPENY (467369) (NY). Call 1-800-NEXT-STEP (AZ), 1-800-522-4700 (KS), 1-800-327-5050 (MA), 1-800-BETS-OFF (IA), 1-800-270-7117 for confidential help (MI), Call 877-718-5543 or visit morethanagame.nc.gov. (NC), Call or Text 800-889-9789 (TN).

Allegations of Unlicensed Sports Betting Activity

In the cease-and-desist notices, the SWC claimed the companies were offering sports betting services without holding a valid sports wagering license issued by the state. Tennessee law requires all sports betting operators to be licensed and regulated by the council.

The SWC also alleged that the companies were offering wagering products that do not comply with state consumer protection standards, including restrictions related to bettor eligibility.

Potential Penalties and Enforcement Actions

The SWC stated that continued operation without proper authorization could result in financial penalties, including fines of up to $10,000 for a first offense. The council also indicated it would pursue injunctive relief if the companies fail to comply with the cease-and-desist orders.

The letters further noted that the companies could face investigation by law enforcement if they continue offering sports betting services in Tennessee. One of the cease-and-desist letters, sent to Kalshi, described the company’s activities as an “illegal gambling operation” under Tennessee law. 

The SWC warned the New York-based company that it could face both civil and criminal penalties if it did not halt sports betting activity in the state.

Impact on Tennessee Sports Betting Market

Tennessee operates a fully online sports betting market with licensed sportsbooks offering regulated wagering through approved Tennessee sports betting apps. The SWC’s enforcement action reinforces the state’s requirement that all sports betting operators comply with licensing, regulatory, and consumer protection standards.

As of mid-January 2026, the SWC has not announced whether the three companies have complied with the cease-and-desist orders.