Story perspectives

Judge Blocks Tennessee's Cease-and-Desist Against Kalshi

1/14/2026

Summary

Story summary

U.S. District Judge Aleta Trauger blocked Tennessee regulators from enforcing a cease-and-desist order against Kalshi.
Judge Aleta Trauger ruled Kalshi is likely to succeed on its claims.
The ruling notes Kalshi would suffer irreparable harm if enforcement proceeded.
The Tennessee Sports Wagering Council had accused Kalshi and other platforms of operating without a state sports wagering license.
A preliminary injunction hearing is scheduled for January 26, 2026.

History

Historical Context

In 2018, the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act, allowing states to legalize sports betting. Following this, Tennessee enacted the Sports Wagering Act in 2020, projecting $50 million in annual revenue for education. Recent legal disputes, including a ruling by Judge Aleta Trauger, may influence future regulations and the balance between state authority and market innovation.

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Story summary

U.S. District Judge Aleta Trauger blocked Tennessee regulators from enforcing a cease-and-desist order against Kalshi.
Judge Aleta Trauger ruled Kalshi is likely to succeed on its claims.
The ruling notes Kalshi would suffer irreparable harm if enforcement proceeded.
The Tennessee Sports Wagering Council had accused Kalshi and other platforms of operating without a state sports wagering license.
A preliminary injunction hearing is scheduled for January 26, 2026.

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