The Tennessee Sports Wagering Council (SWC) has taken decisive action against three companies for allegedly operating sports betting services without the necessary licenses. The affected companies—Kalshi, Polymarket, and Crypto.com—have been ordered to immediately cease their betting activities in the state.
Earlier this month, the SWC issued cease-and-desist letters to the companies, requiring them to halt any sports betting offerings and to void all bets placed by Tennessee residents. Furthermore, the companies are required to refund any deposits made by residents, with a deadline set for January 31, 2026.
The regulatory body emphasized that these companies were providing sports betting without the requisite approval and licenses mandated by state regulations. According to the SWC, the operations conducted by these companies are not compliant with existing legal protections, which include specific restrictions on who is eligible to place bets.
The SWC characterized these actions as an “immediate and significant threat to the public interest of Tennessee,” underscoring the importance of regulatory compliance in the gambling industry. The council has warned that non-compliance could result in financial penalties, with fines starting at $10,000 for any first offenses. Additionally, the SWC indicated it may pursue “injunctive relief” should the companies fail to adhere to its directives.
The letters further cautioned that, should the companies continue their operations unlawfully, they could face additional investigations by law enforcement agencies. As state regulators continue to monitor compliance within the sports betting sector, the actions against these three companies highlight the ongoing efforts to uphold legal standards and protect the interests of residents.
