Tennessee Judge Issues Preliminary Injunction Halting State Action Against Kalshi

Tennessee Federal Court Ruling Favors Kalshi

A federal judge in Tennessee has issued a significant ruling by granting Kalshi’s request for a preliminary injunction, preventing state authorities from enforcing local sports betting laws against the company’s event-related contracts.

Key Dispute Centers on Federal Law Protection

In the ruling issued on Thursday, Judge Trauger stated that Kalshi’s sports event contracts likely fall under the category of 'swaps' as defined by the Commodity Exchange Act, and are therefore protected under federal law.

• The injunction applies to all relevant state agencies
• It will remain in effect throughout the duration of the lawsuit
• The decision provides legal protection for Kalshi’s operations in the state

This decision ensures Kalshi’s continued operation in Tennessee and highlights the potential conflict between state and federal regulations.