Underdog has ramped up its legal efforts, filing a new lawsuit against Tennessee as part of an ongoing battle with several states.

This latest case, brought in the federal court for the Middle District of Tennessee (Nashville), accuses the state of exceeding its regulatory authority by issuing a cease-and-desist order linked to Underdog’s sports-event contracts.

Since shifting to a prediction market business model in March after acquiring Aristotle Exchange, Underdog has pursued legal action against seven states, starting from September 8th.

The suit against Tennessee comes on the heels of a pivotal ruling from the Sixth Circuit regarding prediction markets and serves as a direct response to the cease-and-desist letter issued by the Sports Wagering Council (SWC) on October 9th. Observers of the industry might find Underdog’s claims unsurprising.

The prediction market platform asserts that states like Massachusetts, New Mexico, Ohio, Washington, Wisconsin, Connecticut, and Tennessee cannot legally challenge a federally regulated exchange, even one offering sports-related event contracts. As a Designated Contract Market (DCM), Underdog operates under the authority of the Commodity Futures Trading Commission, which holds exclusive jurisdiction over prediction market products.

While prediction markets are technically legal across the nation, platforms like Kalshi have had to restrict their sports contracts in various jurisdictions this year, with trading related to sports outcomes currently prohibited in Massachusetts, Nevada, Michigan, and Washington.