Tennessee Judge Grants Preliminary Injunction Blocking State Action Against Kalshi

BlockBeats News, February 20th, according to The Block, the prediction market platform Kalshi has obtained a preliminary injunction in Tennessee, USA, preventing state officials from enforcing its sports-related event contracts under local gambling laws.

In a ruling on Thursday, U.S. District Court Judge Aleta A. Trauger sided with Kalshi on key issues, finding that the company is likely to successfully argue in the lawsuit that its sports event contracts are a "swap" product under the Commodity Exchange Act.

The injunction applies to the relevant state officials and prohibits them from taking enforcement actions against Kalshi under Tennessee's sports gambling laws during the litigation.