The Tennessee Sports Betting Commission (SWC) recently issued stop-loss orders to Kalshi, Polymarket, and Crypto.com, requiring them to cease offering sports betting contracts to Tennessee residents. The reason given is that these companies are operating an illegal gambling business without a state license. In a notice issued on January 9, the SWC accused the three companies of illegally offering sports betting products under the guise of "event contracts." Although these platforms are currently registered as designated contract markets with the U.S. CFTC, the SWC emphasized that under Tennessee law, any entity accepting sports betting must hold a license issued by the state. The companies are required to cease all activities in the state by January 31, withdraw open contracts, and refund residents' deposits. Failure to comply by the deadline could result in civil penalties of up to $25,000 per violation, and even criminal charges. (CoinDesk)