Court Remands Tennessee's Social Casino Lawsuit to Local Jurisdiction
By: Grant M. 📅 March 17, 2025 📸 Photo by Flickr, CC by-NC 2.0 (https://creativecommons.org/licenses/by-nc/2.0/)
Cliffnotes
- The tribunal ruled it would not interfere unless the plaintiff proved a Constitutional breach
- A handful of social casino juggernauts hoped to resolve the dispute in federal court
- A Tennessee statute permits third parties to impose penalties for unlawful gambling losses
Grant, a one-time student at Virginia Tech, a former track and field star, and an ardent sports enthusiast and sports bettor, aims to provide timely and in-depth coverage of sports betting industry headlines. Grant entered the professional scene in 2021 and swiftly made a name for himself, collaborating with entities such as Forbes and VSiN, and earning a reputation as a reliable industry insider. Outside of work, Grant can often be found sweating it out at the gym, strolling around town, or glued to the screen for the big game of the day. 📝 Check out more of Grant's insights!
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Recent regulatory actions in Tennessee have seen the Sports Wagering Council target prediction markets, while social casino operators remain a topic of contention. Although searches reveal a Tennessee social casino case[2], the federal court transferred it back to state court (specific ruling details not included in available sources).
Key highlights:- Regulatory Crackdown: Tennessee’s Sports Wagering Council is lobbying the CFTC to curb sports prediction markets such as Kalshi and Robinhood, asserting they are unlicensed gambling[3][4].- Legal Battlefield Shift: A separate class action lawsuit against gaming operators (e.g., VGW’s LuckyLand) alleges illegal gambling under state laws, but the lawsuit was filed in Georgia (Kennedy v. VGW Holdings)[5].- Pending Cases: The Tennessee social casino case appears procedural (federal-to-state transfer)[2], with no definitive ruling on liability or losses detailed in the available records.
Amidst the legal standoff, social casino giants are anxiously keeping tabs on developments, hoping to bring the dispute before a federal court. Tennessee’s regulatory focus, however, seems to zero in on prediction markets, with social casinos receiving less immediate attention.
Grant's coverage of the sports betting industry includes the ongoing dispute between social casino operators and Tennessee's regulatory bodies. Athlete and sports bettor Grant M., a former track and field star at Virginia Tech, collaborates with major entities like Forbes and VSiN, and has earned a reputation as a reliable industry insider.
Recently, Tennessee's Sports Wagering Council targeted prediction markets while social casino operators remain a contentious topic. Although a Tennessee social casino case was transferred from federal to state court, the specific ruling details are not included in available sources. Key highlights of the situation include the council's efforts to curb sports prediction markets, a separate class action lawsuit against gaming operators filed in Georgia, and Tennessee's regulatory focus on prediction markets rather than social casinos.
Meanwhile, social casino giants are closely monitoring the legal standoff, hoping to take the dispute to a federal court. Despite the legal battlefield shift, the social casino issue in Tennessee remains procedural, with no definitive ruling on liability or losses detailed in the available records yet. The financial aspect of the industry is undoubtedly affected by these regulatory actions, as the competition in online casino games like blackjack, sports betting, and jackpot bets continues to grow, particularly in cities like Las Vegas.
