Tennessee judge issues injunction blocking state move against Kalshi

US Federal Judge Aleta Trauger granted Kalshi a preliminary injunction against Tennessee, finding its sports event contracts fall under CFTC jurisdiction.

A US federal judge in Tennessee temporarily blocked the state from enforcing its gambling laws against prediction markets operator Kalshi’s sports event contracts. 

The ruling, issued by Judge Aleta Trauger of the US District Court for the Middle District of Tennessee on Thursday, allows Kalshi to continue offering sports-related event contracts to users in the state while its lawsuit against Tennessee regulators proceeds.

Trauger found that Kalshi is likely to succeed on the merits of its claim that federal commodities law preempts Tennessee’s attempt to regulate its sports markets as illegal gambling. 

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