A Tennessee judge granted a preliminary injunction to Kalshi, blocking the enforcement of state betting laws against the prediction markets platform while litigation continues. U.S. District Judge Aleta A. Trauger ruled that Kalshi’s sports-related event contracts likely qualify as swaps under the Commodity Exchange Act, allowing them to operate free from state regulation. This ruling contrasts with mixed decisions from other states, where courts have denied similar injunctions, indicating a broader legal debate about the status of prediction markets and event contracts. The Commodity Futures Trading Commission recently reinforced its stance by filing an amicus brief affirming federal jurisdiction over these contracts as commodity derivatives.
Tennessee judge blocks enforcement against Kalshi’s sports contracts
