Kalshi Wins Order Barring Tennessee Sport Betting Regulators (2)

Feb. 20, 2026, 1:46 PM UTCUpdated: Feb. 20, 2026, 7:14 PM UTC

Kalshi Inc. convinced a federal judge to block Tennessee officials from cracking down on the exchange’s sports event contracts, which allow people to put money on a wide range of binary outcomes.

Kalshi is likely to succeed in its arguments that these contracts are “swaps” and federal law preempts Tennessee’s authority to regulate them, Judge Aleta A. Trauger said Thursday, granting the prediction market a preliminary injunction against state enforcement.

The victory comes after the Commodity Futures Trading Commission argued its authority in a federal appeals court, filing a proposed amicus brief earlier this week in a case involving Crypto.com. ...

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