Tennessee has officially asked the federal government to crack down on online prediction markets, claiming they operate as unauthorized sports betting platforms. The state's Department of Revenue is pushing for action from the Commodity Futures Trading Commission (CFTC), citing potential violations of state gambling laws.
This bold move follows similar enforcement efforts by Nevada, Illinois, and New Jersey, which have already issued cease-and-desist letters to companies like Kalshi and Robinhood. Tennessee's request highlights a growing national clash between state regulators and emerging prediction market operators, many of whom claim they are federally compliant under CFTC oversight.
In response, Kalshi has filed federal lawsuits against Nevada and New Jersey, arguing that states are overstepping their jurisdiction and interfering with a federally regulated financial product.
Crypto.com complete one month after they launch Sports Betting in the US with Prediction Platform”
Meanwhile, the CFTC has scheduled a public roundtable to discuss the future of prediction markets, signaling that these platforms may soon face stricter scrutiny or clearer guidelines.
Tennessee, which legalized sports betting in 2020, has seen over $4.7 billion in bets placed in 2024 alone, with tax revenues funding public education and mental health programs. State officials warn that unlicensed markets threaten consumer protections and undermine legitimate operators. As the legal battle heats up, industry stakeholders await the CFTC’s next move, which could reshape the U.S. betting landscape for years to come.
