Tennessee Orders Halt on Crypto.com and Polymarket Sports Contracts
The Tennessee Sports Wagering Council (SWC) has taken decisive action against major platforms Crypto.com, Polymarket, and Kalshi by issuing cease-and-desist orders on January 9, 2026. The SWC mandates these platforms to stop offering sports wagering contracts to Tennessee residents by January 31, 2026. This move, according to Cryptopolitan, stems from allegations that the companies are operating without the necessary state licenses, thus violating Tennessee's gambling laws.
📌 Key Takeaways
- Tennessee orders halt by January 31, 2026.
- Non-compliance risks $25,000 fines per infraction.
- Crypto.com lacks necessary Tennessee gambling licenses.
Potential Penalties for Non-Compliance
Failure to comply with the Tennessee Sports Wagering Council's directives could lead to severe consequences for the implicated firms. According to a report from Bitcoinist, the companies face potential civil penalties of up to $25,000 per infraction. Additionally, there is a risk of criminal referrals for aggravated gambling promotion. These measures underscore the state's rigorous enforcement of its gambling regulations and its commitment to maintaining legal integrity in the sports betting market.
Jurisdictional Reach and Regulatory Framework
The cease-and-desist orders highlight the jurisdictional complexities surrounding online sports betting in the United States. Although companies like Crypto.com and Polymarket are registered with the Commodity Futures Trading Commission (CFTC), their operations must also comply with state-specific laws. Tennessee's actions mirror similar regulatory measures taken by states like Connecticut, Illinois, and Arizona, which have also issued cease-and-desist orders against these firms in the past, as noted by Fidelity.
Tennessee's actions mirror similar regulatory measures taken by states like Connecticut, Illinois, and Arizona.
Impact on Crypto Payment Methods in Gambling
The halt on sports wagering contracts by Crypto.com and Polymarket raises important questions about the role of cryptocurrency in the gambling industry. These platforms, which allow transactions using offeref="/guides/bonus-terms-explained">offeref="/guides/bonus-hunting-guide">offeral currencies, offer benefits such as fast transaction speeds and enhanced privacy. However, as TradingView reports, the lack of regulatory compliance in some jurisdictions poses significant challenges. This situation could deter future adoption of crypto payment methods in places with stringent gambling laws.
Comparison to Traditional Payment Methods
When compared to traditional payment methods like credit cards and bank transfers, cryptocurrencies offer distinct advantages and disadvantages. While cryptos are renowned for their quick transaction processing and lower fees, they also come with volatility risks and legal uncertainties. According to Brave New Coin, the regulatory hurdles faced by companies like Crypto.com highlight the ongoing tension between innovative payment solutions and existing legal frameworks.
Future Implications for Online Gambling
The Tennessee crackdown on unauthorized sports wagering contracts could set a precedent for future regulatory actions against crypto-based gambling platforms. As regulators continue to scrutinize the intersection of cryptocurrency and online gambling, companies must navigate complex legal landscapes to maintain compliance. The situation underscores the importance of obtaining the proper licenses and adhering to state-specific gambling laws, as emphasized by Crypto Briefing. This regulatory environment may prompt companies to reconsider their operational strategies to avoid similar legal challenges in the future.