Overview
Tennessee moved against a second platform after the Sixth Circuit vacated Kalshi’s Tennessee injunction on September 25. The Sports Wagering Council sent Underdog a letter dated October 9, 2026, and four days later, on October 13, Underdog’s exchange and its brokerage, UDM (Underdog Predict), sued the Attorney General and the Council’s executive director and members. They seek a declaration that federal law preempts Tennessee’s enforcement and an injunction. It is Underdog’s seventh state suit.
The Sixth Circuit’s ruling binds this court, and press reports say the complaint acknowledges as much and preserves the question for appeal. Kalshi’s own petition for rehearing of that ruling is pending, which keeps its Tennessee injunction in place for now. The court has referred the case to a magistrate judge and set an initial case-management conference for January 28, 2027. (Caption, parties, filing date and schedule read from the court docket; the October 9 letter is Exhibit 1 to the complaint.)