Federal Judge Blocks Tennessee's Enforcement of Gambling Laws on Kalshi's Contracts

A federal judge in Tennessee has issued a preliminary injunction that prevents the state from enforcing gambling laws against Kalshi's sports event contracts. According to NS3.AI, the judge suggested that these contracts are likely considered swaps under federal commodity law, which implies that federal jurisdiction may supersede state regulations. This decision contrasts with a similar case in Nevada and aligns with a recent amicus brief from the Commodity Futures Trading Commission (CFTC), which asserts exclusive oversight over prediction markets.