Federal judge blocks Tennessee from regulating Kalshi prediction market sports contracts

A federal judge in Nashville has stepped in to stop Tennessee regulators from going after prediction market company Kalshi, at least for now, intensifying a broader clash over who gets to police this emerging corner of the betting world.

In a 25-page opinion, U.S. District Judge Aleta A. Trauger said Kalshi is likely to win its argument that federal law overrides Tennessee’s attempt to treat its sports event contracts as illegal gambling. She issued a preliminary injunction blocking...