Kalshi has filed a lawsuit against the Tennessee Sports Wagering Council following the regulator’s decision to issue a cease-and-desist order to the prediction markets operator, as well as to Crypto.com and Robinhood.
The Council demanded each operator "cease offering sports event contracts to customers in Tennessee immediately, void all pending sports event contracts that were entered into by any person located in Tennessee and refund all funds on deposit to any person located in Tennessee no later than January 31, 2026."
According to the Council, interactive sports wagering in Tennessee is defined as “placing a wager on a sporting event via the internet, a mobile device or other telecommunications platform.”
The regulator would go on to state: “The sports events contracts offered on Kalshi’s exchange are not compliant with these protections (and many others) and are an immediate and significant threat to the public interest of Tennessee.
“Even if it did offer these protections, Kalshi does not have the required license issued by the SWC and does not pay the privilege tax mandated by statute.”
In response, Kalshi also filed a motion for preliminary injunction and requested an emergency hearing in Tennessee federal court on January 12. The operator is currently in the midst of legal battles with fellow state regulators, including in New York, Wisconsin and Maryland.
Kalshi named Tennessee Sports Wagering Council Chairman William Orgen, Executive Director Mary Beth Thomas and state Attorney General Jonathan Skrmetti within the lawsuit, which was officially filed in the Middle District of Tennessee Federal Court.
At the time of writing, Robinhood and Crypto.com have yet to respond to the cease-and-desist order, but could await the results of Kalshi’s filing prior to taking action.
Kalshi Co-Founder Luana Lopes Lara stated in December 2025 that Brazil is firmly on the operator's radar as it plans its next phase of international expansion
