A federal judge in Tennessee has issued a temporary injunction barring state regulators from taking action against Kalshi, a prediction markets platform that filed a lawsuit following an order to halt its offering of sports event contracts. 

On Monday, Judge Aleta Trauger granted a temporary restraining order and scheduled a hearing to address Kalshi’s request for a preliminary injunction against the state regulators. 

In her ruling, Judge Trauger noted that Kalshi would incur “irreparable injury and loss” due to the regulators’ actions, emphasizing that the company is “likely to succeed on the merits of its claims,” with a strong possibility that its rights will be infringed upon if the regulators are not restrained. Recently, the Tennessee Sports Wagering Council issued cease-and-desist letters to Kalshi, along with Polymarket and Crypto.com, demanding the cessation of their sports event contracts in the state.