Are Prediction Markets Legal in Tennessee?

Last updated August 16, 2026. Snapshot — not legal advice.

As of August 16, 2026, the legality of prediction markets in Tennessee is unresolved — litigation is ongoing with no final ruling yet.

Prediction markets in Tennessee

Contested — injunction granted, on appeal

A federal judge granted Kalshi a preliminary injunction blocking Tennessee enforcement (February 2026), finding its sports event contracts likely "swaps" under the Commodity Exchange Act. The state’s appeal is consolidated with Ohio at the Sixth Circuit (argued July 2026), so the outcome is unsettled.

Litigation affecting Tennessee

KalshiEX LLC v. Schuler (6th Cir., consolidated with the Tennessee appeal)Tennessee PI granted (Feb 2026) / Ohio PI denied; the Sixth Circuit consolidated both for argument in late July 2026.

Argued; decision pending

Sports betting & gambling in Tennessee

Legal — Mobile Only

Legalized 2019; online-only market (no retail sportsbooks or casinos) launched November 2020 The market is regulated by the Tennessee Sports Wagering Council. Tribal gaming: not a factor.

The federal-vs-state fight

Every entry in this fight turns on the same question: does a prediction-market platform's federal regulation by the CFTC preempt a state's gambling law, or does the state retain authority to restrict it? Courts around the country are answering that question differently — sometimes for the platform, sometimes for the state — and almost every ruling so far is preliminary and under appeal. Treat this page as a snapshot, not a final word.

This page is informational, not legal advice. Nearly every litigation entry referenced here is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.