Prediction Markets in Tennessee

Status in Tennessee as of October 3, 2026

Platform	Status	Why (source)	Welcome offer in Tennessee
Kalshi	Available, dispute pending	Kalshi accepts Tennessee residents; the Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. (source (opens in a new tab))	Valid: Trade $25 and Get $25!
Polymarket US	Available, dispute pending	Polymarket US accepts Tennessee residents; the Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. (source (opens in a new tab))	Valid: Deposit $10 get a $25 Trading Bonus!
ProphetX	Available, dispute pending	ProphetX accepts Tennessee residents; the Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. (source (opens in a new tab))	Valid: Trade $50, Earn $75!
OG (by Crypto.com)	Available, dispute pending	OG accepts Tennessee residents; the Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. (source (opens in a new tab))	Valid: Trade $25 Get $50 in Rewards! (New users only)
Novig	Available, dispute pending	Novig accepts Tennessee residents; the Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. (source (opens in a new tab))	Valid: Deposit $10 Get $50 in Trade Credits!
Rebet	Not offered	Rebet is a sweepstakes app, not a CFTC-regulated exchange; its sweepstakes rules exclude Tennessee. (source)	Not shown (the partner sheet lists Tennessee, Rebet's own rules exclude it; owner to confirm with the network)

What changed (newest first)

• Sep 25, 2026 (federal) — Sixth Circuit rules against Kalshi in Ohio and Tennessee appeals. Source: U.S. Court of Appeals for the Sixth Circuit (opinion, Nos. 26-3196/26-5235) (opens in a new tab)
• Sep 11, 2026 (federal) — Crypto.com asks Supreme Court to review Ninth Circuit ruling (No. 26-344). Source: Supreme Court of the United States, docket No. 26-344 (opens in a new tab)
• Sep 10, 2026 (federal) — Kalshi seeks Ninth Circuit rehearing; Robinhood petitions Supreme Court. Source: Sports Betting Dime (opens in a new tab)
• Sep 2, 2026 (federal) — New Jersey asks U.S. Supreme Court to review Kalshi preemption ruling. Source: New Jersey Office of the Attorney General (opens in a new tab)
• May 12, 2026 (federal) — CFTC files brief backing Kalshi in Sixth Circuit appeal. Source: CFTC press release 9230-26 (opens in a new tab)
• Apr 6, 2026 (federal) — Third Circuit sides with Kalshi against New Jersey regulators. Source: U.S. Court of Appeals for the Third Circuit (opinion, No. 25-1922) (opens in a new tab)
• Feb 19, 2026 — Federal judge grants Kalshi injunction in Tennessee. U.S. District Judge Aleta Trauger granted Kalshi a preliminary injunction allowing it to keep offering sports event contracts in Tennessee during its lawsuit. Source: Sports Betting Dime (opens in a new tab)
• Jan 9, 2026 — Tennessee regulator sends cease-and-desist letters to three prediction markets. The Tennessee Sports Wagering Council sent cease-and-desist letters to Kalshi, Polymarket and Crypto.com ordering them to stop offering sports event contracts in the state. Source: Event Horizon (opens in a new tab)

Tennessee's Established Mobile Sports Betting Market

Tennessee was the first US state to launch online-only sports betting, going live on November 1, 2020 under the Tennessee Sports Gaming Act. The state has no in-person sportsbook framework — all wagers are mobile-first. As of 2026, eleven licensed operators are live, including FanDuel, DraftKings, BetMGM, Caesars, ESPN BET, Fanatics, and Action 24/7 (a Tennessee-native operator).

The state imposes a 1.85% tax on handle (changed in 2023 from 20% on adjusted gross revenue) — one of the most operator-friendly tax structures in the country. Through 2025, Tennessee sportsbooks have produced over $400M in state tax revenue.

The success of TN's licensed market is one reason the SWC challenged Kalshi in 2025: state regulators view sports event contracts as direct competition that bypasses the licensure and tax framework that licensed operators bear.

What Tennessee Residents Can Trade

The full federal prediction market catalog is available to TN residents:

• NFL contracts including Tennessee Titans game lines, AFC South division markets, and Super Bowl futures
• NBA contracts including Memphis Grizzlies game and futures markets
• NHL including Nashville Predators game lines and Stanley Cup futures
• MLB — no MLB team in TN, but full league coverage
• College football and college basketball — Tennessee Volunteers, Vanderbilt Commodores, Memphis Tigers, and SEC↗ (opens in a new tab) conference markets
• Politics — 2026 midterms, 2028 presidential, congressional control
• Economic data and Crypto — full catalog

Tennessee is one of the strongest college sports trading states given the SEC↗ (opens in a new tab) football and basketball footprint and the strong regional engagement around University of Tennessee athletics.

Best Platforms for TN Residents

OG.com is our top pick for Tennessee in 2026. Crypto.com's CFTC-regulated sports-first prediction market combines a 4-leg parlay builder, social trading feed, and live in-game contracts — and new traders can trade $25 and get $50 in rewards with code RANKPREDICTS. Kalshi remains a strong runner-up for the deepest non-sports catalog and lowest published fees.

Polymarket US offers strong politics and crypto market depth and is not subject to TN enforcement action. Full statewide access.

Robinhood provides Kalshi-routed contracts inside the Robinhood app — zero per-contract commission and the same federal protection as direct Kalshi trading.

DraftKings Predictions and FanDuel Predicts are interesting in TN because both companies operate licensed Tennessee sportsbooks. The Predictions products give users access to event contract structures (combos, deeper futures) that complement existing sportsbook accounts.

How TN Residents Sign Up

The signup process is identical to opening a brokerage account:

1. Visit the platform website or app
2. Provide name, address, date of birth, and last four of SSN
3. Upload government-issued ID for KYC
4. Link a bank account and deposit in US dollars
5. Begin trading

Must be 18+. Geofencing enforced by IP and device location.

How TN Compares to Neighboring States

• Alabama: Available (as of October 3, 2026)
• Arkansas: Available (as of October 3, 2026)
• Georgia: Available (as of October 3, 2026)
• Kentucky: Available, dispute pending (as of October 3, 2026)
• Mississippi: Available (as of October 3, 2026)
• North Carolina: Available (as of October 3, 2026)
• Virginia: Available (as of October 3, 2026)

Tax Considerations for TN Residents

Tennessee has no state income tax — making it one of the most tax-favorable jurisdictions in the country for prediction market trading. TN traders owe federal income tax on net gains from event contracts (typically taxed as short-term capital gains or ordinary income depending on the contract structure) but no state-level liability.

Kalshi provides a profit-and-loss statement for your trades; platforms' 1099s mainly cover interest, rewards and crypto transfers. TN residents should still keep careful trade records — federal reporting and audit obligations apply regardless of state tax treatment.

What could change the status

Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date). We re-check this page when any of these happen and log the change above.

Best Platforms Compared

Prediction markets in other states

• Alaska
• California
• Colorado
• Connecticut
• Florida
• Hawaii
• Illinois
• Kansas
• Maryland
• Massachusetts
• Minnesota
• Nebraska
• New Hampshire
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Rhode Island
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Wyoming
• Alabama
• Arizona
• Arkansas
• Delaware
• Georgia
• Idaho
• Indiana
• Iowa
• Kentucky
• Louisiana
• Maine
• Michigan
• Mississippi
• Missouri
• Montana
• Nevada
• New Mexico
• North Carolina
• Ohio
• Oklahoma
• Puerto Rico
• South Carolina
• South Dakota
• Tennessee
• Washington DC
• West Virginia
• Wisconsin

§ References & Sources

1. Commodity Futures Trading Commission (CFTC) (opens in a new tab)— U.S. federal regulator
2. CFTC Designated Contract Markets list (opens in a new tab)— CFTC
3. 26 U.S. Code § 1256 — Section 1256 contracts marked to market (opens in a new tab)— Cornell Law / U.S. Code
4. IRS Form 6781 — Gains and Losses From Section 1256 Contracts (opens in a new tab)— Internal Revenue Service
5. National Council on Problem Gambling — 1-800-GAMBLER (opens in a new tab)— NCPG

Frequently asked questions

Are prediction markets legal in Tennessee?

We don't give legal verdicts, but here is the status as of October 3, 2026: Kalshi, Polymarket US, ProphetX, OG and Novig: Available, dispute pending. The Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. Nationally, federal appeals courts are split on sports event contracts, all at the preliminary-injunction stage, and three Supreme Court petitions are pending; none has been granted.

Can I use Kalshi in Tennessee?

Status as of October 3, 2026: Available, dispute pending. Kalshi accepts Tennessee residents; the Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. Kalshi's welcome offer (Trade $25 and Get $25!) applies to Tennessee residents. Kalshi's minimum age is 18; we recommend 21+.

What has Tennessee done about prediction markets?

The Sixth Circuit on Sep 25, 2026 vacated the injunction that had protected Kalshi in Tennessee, where the regulator ordered Kalshi, Polymarket and Crypto.com to stop sports contracts in Jan 2026. Most recent entries in our timeline: Feb 19, 2026: Federal judge grants Kalshi injunction in Tennessee; Jan 9, 2026: Tennessee regulator sends cease-and-desist letters to three prediction markets. Each entry above links to its source.

What could change the status in Tennessee?

Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date). We re-check this page when any of these happen and log the change above.