• Tennessee judge issues injunction blocking state move against Kalshi US Federal Judge Aleta Trauger granted Kalshi a preliminary injunction against Tennessee, finding its sports event contracts fall under CFTC jurisdiction. • Cointelegraph in your social feed A US federal judge in Tennessee temporarily blocked the state from enforcing its gambling laws against prediction markets operator Kalshi’s sports event contracts. • Theruling, issued by Judge Aleta Trauger of the US District Court for the Middle District of Tennessee on Thursday, allows Kalshi to continue offering sports-related event contracts to users in the state while its lawsuit against Tennessee regulators proceeds. • Trauger found that Kalshi is likely to succeed on the merits of its claim that federal commodities law preempts Tennessee’s attempt to regulate its sports markets as illegal gambling. • The court concluded that Kalshi’s sports event contracts are “swaps” under the Commodity Exchange Act, over which the law grants the US Commodity Futures Trading Commission (CFTC) exclusive jurisdiction, and held that Tennessee’s enforcement efforts are likely preempted under conflict preemption principles. • The injunction applies to the identified state officials, while the Tennessee Sports Wagering Council itself was dismissed on sovereign immunity grounds, and Kalshi was ordered to post a $500,000 bond.

Article Summaries:

  • A federal judge in Tennessee, Judge Aleta Trauger, issued a temporary injunction preventing state regulators from enforcing gambling laws against Kalshi, a prediction‑market operator. The ruling allows Kalshi to continue offering sports‑event contracts to Tennessee users while its lawsuit against the state proceeds. Trauger found that Kalshi’s contracts are “swaps” under the Commodity Exchange Act, giving the U.S. Commodity Futures Trading Commission exclusive jurisdiction, and that Tennessee’s enforcement is likely pre‑empted. The injunction applies to specific state officials; the Tennessee Sports Wagering Council was dismissed on sovereign‑immunity grounds, and Kalshi must post a $500,000 bond.

Sources: