Vardan KhachatryanPrediction markets in Tennessee
14 of the 15 apps we rank are open here, and 10 offer sports contracts.
- Apps restricted or contested
- Kalshi, Polymarket US, DraftKings Predictions, Fanatics Markets, FanDuel Predicts
- Rulings and actions in Tennessee
- 3 on record, listed in the timeline
- Legal sports betting
- Online only, since November 2020
- Minimum age
- 18 on most apps; 21 at sportsbooks
- Federal appeals court
- Sixth Circuit: ruled against Kalshi on September 25, 2026
- Last change
- September 25, 2026
Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.
Why prediction markets are legal in Tennessee
Prediction market apps sell event contracts: yes-or-no questions that pay $1 if the answer is yes. The CFTC regulates the exchanges that list them.
That federal oversight is why the apps need no Tennessee license for elections, the economy or the weather. The state is not fighting those markets.
Sports are another matter. Tennessee was the first state to allow sports betting only online, and it wants every sports wager licensed.
It has pushed hard. It wrote to the CFTC in 2025, ordered three platforms to stop in January, and has now won on appeal.
Here is who offers what, what the courts have said, and where the risks sit.
Which prediction market apps work in Tennessee
Most apps we rank accept Tennessee residents, and most list sports here. Three platforms, though, got the state's order to stop.
Kalshi kept trading under a federal injunction that the Sixth Circuit has now vacated. Our page on whether Kalshi is legal in Tennessee explains when that takes effect.
Polymarket got the same order and never sued, so nothing shields it. See whether Polymarket is legal in Tennessee.
Crypto.com's exchange was the third. It is now run by OG, which lists no Tennessee restriction of its own.
Brokers such as Robinhood, Coinbase, Webull and PrizePicks sell Kalshi's contracts, so its fate here reaches them. DraftKings and FanDuel run licensed sportsbooks in Tennessee, so their prediction apps skip sports.
The table lists each app in our ranking order, with its status here and a link to our review.
| App | Status in Tennessee | More |
|---|---|---|
| Kalshi | Contested for sports contracts, with no restriction in force | Is Kalshi legal in Tennessee? |
| Gemini Predictions | Available, sports included | Gemini Predictions review |
| Polymarket US | Not available for sports contracts | Is Polymarket legal in Tennessee? |
| OG | Available, sports included | OG review |
| Interactive Brokers | Available; it lists no sports contracts anywhere | Interactive Brokers review |
| Robinhood | Available, sports included | Robinhood review |
| ProphetX | Available, sports included | ProphetX review |
| Coinbase | Available, sports included | Coinbase review |
| Webull | Available, sports included | Webull review |
| Novig | Available, sports included | Novig review |
| DraftKings Predictions | Available, but not for sports contracts | DraftKings Predictions review |
| Fanatics Markets | Not available | Fanatics Markets review |
| FanDuel Predicts | Available, but not for sports contracts | FanDuel Predicts review |
| PrizePicks | Available, sports included | PrizePicks review |
| Underdog Predict | Available, sports included | Underdog Predict review |
How a prediction market trade works
Every contract is a yes-or-no question. It pays $1 if the answer is yes and nothing if it is no.
The price is the crowd's odds. A contract at 60¢ means traders put the chance at about 60%.
Say the Titans are 60¢ to win on Sunday on Kalshi. You buy 100 contracts for $60, plus a $1.68 fee.
If they win, you collect $100, a $38.32 profit. If they lose, you are out $61.68.
You can also sell before the result. New to this? Start with what prediction markets are.
What Tennessee has said about prediction markets
Tennessee's Sports Wagering Council moved first. In April 2025, it asked the CFTC not to allow sports event contracts in the state, citing 13 alleged violations.
On January 9, 2026, it sent cease-and-desist letters to Kalshi, Polymarket and Crypto.com's exchange. They demanded a stop to sports contracts, voided positions and refunds by January 31.
Executive Director Mary Beth Thomas called the contracts “an immediate and significant threat to the public interest of Tennessee.”
The council backs its letters with money. In 2025 it fined more than a dozen offshore sportsbooks $50,000 each for ignoring them.
Lawmakers added a law of their own in 2026. Trying to sway an event while holding a prediction market contract on it is now a Class E felony.
Attorney General Jonathan Skrmetti claimed the September win outright. “Kalshi attempted an end run around Tennessee law,” he said. “They failed.”
The court cases that shape Tennessee's rules
One case matters most: KalshiEX LLC v. Orgel. Kalshi sued Tennessee's officials in federal court in Nashville soon after the January letter.
On February 19, 2026, Judge Aleta A. Trauger granted Kalshi a preliminary injunction. She found its sports contracts are swaps that federal law protects.
Tennessee appealed. The Sixth Circuit heard the case with Kalshi's Ohio appeal on July 30, and ruled on September 25.
All three judges sided with the states. Sports contracts are not swaps, they held, and Tennessee's gambling law is not preempted. The injunction was vacated.
The ruling takes effect when the court issues its mandate, normally 21 days after judgment. That points to about October 16.
For the Ohio side of the same ruling, see prediction markets in Ohio.
What Tennesseans can trade
Sports lead, for now. Titans, Predators, Grizzlies, Vols and Commodores markets trade on most apps.
Politics is on the ballot too. Tennessee elects a governor on November 3, 2026, with Marsha Blackburn against Jerri Green. See the live Tennessee governor odds.
Economics, crypto and weather markets round it out. None of them is part of the state's fight.
The risks for Tennessee traders
Sports access could end soon. Once the mandate issues, Tennessee can enforce its January letter against Kalshi.
That letter demanded that open contracts be voided and deposits refunded. A long-dated Titans or Vols position is the most exposed.
You can lose everything you put into a contract. A 90¢ favorite that loses pays nothing.
Taxes are simpler here. Tennessee has no state income tax. Federal tax still applies, and the IRS has not settled how it treats event contracts.
Trade only what you can afford to lose. Our responsible trading guide covers limits and where to get help.
What could change for Tennessee traders
Timing comes first. A petition for rehearing would delay the mandate, and Kalshi has sought one in the Ninth Circuit.
After that, the council can act. It could enforce its letters with penalties of up to $25,000 per violation and criminal referrals.
The Supreme Court could still reset everything. New Jersey has asked it to decide the question for every state.
Our litigation tracker follows each case.
Tennessee prediction market timeline
Every change to prediction markets' standing in Tennessee, newest first. Each entry links the ruling or report behind it.
Prediction markets vs sports betting in Tennessee
Sports betting is legal in Tennessee, but only online. A 2019 law made it the first state with no retail sportsbooks at all.
Betting began in November 2020. Ten online sportsbooks were live at the end of 2025, and the state has no commercial casinos.
Tennessee taxes 1.85% of every dollar wagered, a model no other state uses. Bettors wagered $5.87 billion in 2025, and the state collected $107.6 million.
Sportsbooks must turn away anyone under 21 or outside the state. The apps take traders from 18 and pay no Tennessee tax.
You trade against other people on an exchange, not against a sportsbook's house odds. If a dispute comes up, you complain to the app, then to the CFTC.
How to choose a prediction market app in Tennessee
Start with what you want to trade. For sports, the safest legal route today is a licensed sportsbook.
For politics and the economy, Kalshi lists the widest range, and nothing in Tennessee targets those markets.
Then compare fees. They vary more than prices do. Our fee comparison works out each app's cost on the same trade.
Our app rankings score every app on the same six criteria. Each review covers fees, payouts and the lawsuits against it.