Tennessee officials are warning about the potential effect of prediction markets on the state’s sports betting revenue.
Since Tennessee launched online sports betting, more than US$19 billion has been wagered, generating US$345 million in tax revenue, much of which has been allocated to education, including private school tuition scholarships.
That funding stream may be at risk as prediction markets such as Kalshi and Polymarket surge in popularity.
These platforms, which are regulated by the US Commodity Futures Trading Commission, allow users to buy and sell peer-to-peer sports event contracts outside of the sports betting laws and without contributing tax revenue to the state.
