Tennessee Petitions CFTC for Eradication of Predictive Betting Exchanges
Get Ready for Tightened Tennessee Sports Betting Regulations!
It's time for a shakeup in the world of sports betting in Tennessee, as the Tennessee Sports Wagering Council (SWC) is cracking down on unlicensed sporting event contracts. The SWC sent a stern letter to the Commodity Futures Trading Commission (CFTC) urging them not to allow such contracts in the Volunteer State.
Several other states have already sounded the alarm, sending cease-and-desist letters to platforms like Kalshi and Robinhood. Michigan has even launched investigations into such markets. The SWC's letter, penned by Executive Director Mary Beth Thomas, will be presented at the CFTC's April 30 roundtable.
The two-page letter accuses prediction markets of 13 violations of state laws and regulations. The Tennessee Sports Gambling Act defines "Wager" as any type of bet on the outcome of a sporting event, and the SWC argues that offering such contracts without a valid license issued by the SWC is a direct violation of the Act.
To protect consumers and prevent fraud, the SWC also highlights several requirements of its sports betting licensees, such as age restrictions, responsible gambling measures, anti-money laundering controls, and prohibitions on the use of credit cards and kiosks. The SWC claims that CFTC-regulated entities offering sports event contracts fail to comply with these safeguards mandated by the Tennessee Legislature.
Interestingly, sources suggest that Tennessee's updated regulations, effective June 30, 2025, may include stronger anti-fraud measures, enhanced responsible gaming definitions, and the implementation of multi-factor authentication for account activities. The updated rules underscore the SWC's commitment to consumer protection and deterring illegal activities in sports betting.
The SWC's stance signifies a growing trend among states to regulate and protect their citizens from unlicensed gambling products. As the debate continues, it's clear that the landscape of sports betting in Tennessee and beyond is about to change dramatically. Stay tuned!
Enrichment Insight: In June 2025, Tennessee is set to enforce new regulations on sports betting, including stricter anti-fraud measures, enhanced responsible gaming definitions, and requirements for multi-factor authentication. The SWC's position on sports event contracts highlights the growing importance of state-level regulation in the world of sports betting.
- The Tennessee Sports Wagering Council is advocating for stricter regulations on sports betting, particularly against unlicensed sports event contracts.
- The SWC argues that offering sports event contracts without a valid license issued by the SWC is a violation of the Tennessee Sports Gambling Act.
- To protect consumers and prevent fraud, the SWC requires their sports betting licensees to adhere to age restrictions, responsible gambling measures, anti-money laundering controls, and prohibitions on the use of credit cards and kiosks.
- The SWC claims that CFTC-regulated entities offering sports event contracts fail to comply with these safeguards mandated by the Tennessee Legislature.
- Tennessee's updated regulations, effective June 30, 2025, may include stronger anti-fraud measures, enhanced responsible gaming definitions, and the implementation of multi-factor authentication for account activities, underscoring the SWC's commitment to consumer protection and deterring illegal activities in sports betting.
