Tennessee regulators have issued cease-and-desist orders to prediction markets Kalshi, Polymarket, and others, mandating the cessation of sports event contracts to state residents. The state's Securities and Exchange Commission (SWC) determined these contracts constitute unlicensed sports betting under Tennessee law, despite the platforms' claims of operating under CFTC oversight. The affected firms must halt all Tennessee-based activities, void any open contracts, and refund deposits by January 31. This regulatory action underscores Tennessee's strict stance on unlicensed sports betting activities within its jurisdiction.