Kalshi Wins Big in Tennessee, but New Threats Emerge

Kalshi has been sinking money into legal defenses over the last year, but continues to see mixed results.

The prediction market operator scored a major win in Tennessee when a court granted it a preliminary injunction. The ruling will allow Kalshi to continue to operate in the Volunteer State as a legal battle with the Tennessee Sports Wagering Council plays out. 

The victory didn’t last long for Kalshi, as two new threats emerged in other parts of the country.

Below, we’ll recap the latest news involving the embattled operator.

Tennessee Ruling Could Swing Momentum

While Kalshi is fighting lawsuits on all fronts, their victory in Tennessee cannot be understated. 

The courts had seemed to have turned against the prediction industry, with operators losing similar injunctions. The successful ruling in Tennessee gives the operator precedent for its arguments by confirming sports contracts are “swaps.” Those transactions are protected under the Commercial Exchange Act, preventing them from qualifying as gambling.

Kalshi is already adding the rulings to other lawsuits. While courts in other states have not granted similar injunctions, a clear ruling from another judge will carry weight in those cases.

CT Discussion Over Predictions Turns Ugly

Last Wednesday, the Connecticut House General Law Committee held a meeting to discuss raising the age requirement for prediction platforms. Lawmakers reviewed HB 5038, which would ban operators from accepting transactions from or advertising to residents under 21.

While the bill has strong support, committee members quickly turned the discussion towards enacting a full ban. 

“I completely agree with a full-on ban,” said Rep. Tim Ackert during the meeting … I think this market is something that if we even have a bill like this, we are validating, in a way, the use of it. I think any time we give credit to something like this platform by regulating it, then we’re saying it’s OK above this age. I don’t want to say supporting it, but giving it validity.”

Ackert’s words led other lawmakers to weigh in, showing strong support for a full ban. While the discussion was a bad sign for operators like Kalshi, no bills or official action have come from the committee meeting.

NCAA Asks Kalshi to Drop “March Madness”

While Kalshi fights state lawmakers, regulators, and tribal gaming groups, a new battlefront is emerging with the NCAA.

The league has officially requested that Kalshi stop using the moniker “March Madness” which is trademarked by the NCAA. That means the league could take the operator to court if they don’t comply. The request concerns only using the name on the platform or in ads, and does not prevent Kalshi from offering markets for the massive tournament.