Tennessee Regulator Writes to CFTC Strongly Opposing Sports Events Prediction Markets

Tennessee is the latest state to push back against sports events prediction markets.

In a letter sent Monday to the Commodity Futures Trading Commission (CFTC), the Tennessee Sports Wagering Council (SWC) expressed opposition to sports event contracts offered by entities such as Kalshi and Robinhood.

“We are writing to express our concerns with the sports event contracts currently being offered in Tennessee by Commodity Futures Trading Commission regulated entities,” the letter read. “We believe that these sports event contracts are Wagers under the (Tennessee Sports Gaming Act) and are being offered in violation of Tennessee law and regulations. …

“As the Commission reviews these sports events contracts, we ask that you respect the policy decisions made by the Tennessee Legislature and not permit the offering of sports events contracts.”  

Close to a dozen states have acted against prediction market platforms, with six issuing cease-and-desist warnings: Illinois, Maryland, Montana, Nevada, New Jersey, and Ohio.

Tennessee Voices Concerns Over Sports Events Prediction Offerings

Tennessee did not go so far as to send a cease-and-desist letter. However, the council encouraged the CFTC to abide by its regulatory framework and remove prediction markets from the consumer marketplace.

Prediction markets allow users to buy and sell contracts for real-world events such as presidential elections and the Super Bowl. Last month, Kalshi introduced single-game betting markets for the NCAA men’s and women’s basketball tournaments.

These markets are available in all 50 states, while sports betting is legally operative in only 38 states plus Washington, D.C.

While they have drawn fierce objection from regulators, Kalshi claims its sports-event contracts don’t constitute gambling and thus are “valid under federal law.”

“The Tennessee Legislature has put in place many requirements of its sports betting Licensees in order to protect those who choose to wager in our state,” the council said in its letter. “The CFTC regulated entities currently offering these sports events contracts are not compliant with these protections (or many others) mandated by the Tennessee Legislature.”

The council raised concerns over several features not found at licensed sportsbooks, including markets for injuries and penalties, college player props, and the ability to make deposits using credit cards or cryptocurrency. These platforms also lack safeguards such as responsible gaming tools, anti-money laundering protocols, and self-exclusion lists.   

Kalshi Stands Firm Despite Pressure

Earlier this month, Kalshi scored a partial win in its legal battle with Nevada when a federal judge granted its request for a temporary restraining order and preliminary injunction against the Nevada Gaming Control Board (GCB).

As such, Kalshi, which had filed a lawsuit against state gaming regulators in response to a cease-and-desist order, can continue offering its sports-related event contracts in Nevada as litigation continues.

Kalshi has also sought legal action against New Jersey.

Despite scrutiny, Kalshi CEO Tarek Mansour remains a strong advocate for prediction markets. “They are the quintessential truth machines,” he wrote last month on X (formerly Twitter), adding, “With trust in traditional institutions at an all-time low, people are turning to prediction markets at an astronomical pace. The growth of the ecosystem in the last year is a testament to how important they have become to the American people.”

The post Tennessee Regulator Writes to CFTC Strongly Opposing Sports Events Prediction Markets appeared first on CasinoBeats.

 Tennessee is the latest state to push back against sports events prediction markets. In a letter sent Monday to the Commodity Futures Trading Commission (CFTC), the Tennessee Sports Wagering Council (SWC) expressed opposition to sports event contracts offered by entities such as Kalshi and Robinhood. “We are writing to express our concerns with the sports
The post Tennessee Regulator Writes to CFTC Strongly Opposing Sports Events Prediction Markets appeared first on CasinoBeats.