In this quick‑hit briefing, Lex and Bianca break down a surprising twist in KalshiEX LLC v. Orgel, where a Tennessee federal court granted Kalshi a preliminary injunction; but the real story lies in the reasoning. As they trace the logic, they reveal how Tennessee’s attempt to label Kalshi as a sportsbook backfired, because under the court’s own “duck test,” sports wagers and event contracts become indistinguishable.
If they’re the same thing, then wouldn’t Tennessee’s state‑licensed sportsbooks effectively be offering federally regulated swaps without being designated contract markets?
The state may have accidentally argued its own sports betting industry is illegal. It’s a sharp, ironic legal loop that turns a simple cease‑and‑desist into a potential indictment of the entire sports wagering regime.
