U.S. state regulators in Tennessee have cracked down on prediction market platforms Kalshi and Polymarket, issuing cease-and-desist orders that prohibit them from offering sports betting contracts to residents. The state's regulatory body determined that such products fall under unlicensed sports betting operations, moving to restrict their availability across the region. This regulatory action highlights the ongoing tension between emerging prediction market platforms and traditional gambling oversight frameworks in various U.S. jurisdictions.