Tennessee senator proposes felony penalty for prediction-market manipulation
Tennessee state senator Ferrell Haile filed SB 1992, a bill that would make it a Class E felony to influence an event’s outcome while a person holds a prediction-market contract that could benefit. The proposal follows a state enforcement dispute over event contracts, which a federal judge temporarily barred Tennessee from enforcing against Kalshi while litigation continues.
The bill could expose people who influence outcomes while holding relevant contracts to criminal penalties.