Tennessee judge lets Kalshi continue sports contracts under federal law
A federal judge in Tennessee granted Kalshi a preliminary injunction on 19 February 2026, blocking state regulators from enforcing gaming laws against its sports event contracts while the case proceeds. Judge Aleta Trauger found the contracts likely qualify as swaps under federal commodities law; Tennessee had ordered Kalshi to stop offering them to residents.
The injunction allows Kalshi to keep offering sports event contracts in Tennessee while the legal challenge continues.