A Washington state court has ordered prediction market platform Kalshi to halt most of its event contracts in the state after finding that the company likely violated state gambling and consumer protection laws.

The final order from King County Superior Court Judge John McHale bars Kalshi from offering, accepting or facilitating contracts tied to sports, elections, politics, entertainment, culture, technology, science and markets based on whether public figures mention specific words.

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Kalshi must implement geofencing based on users’ IP addresses and residency by Aug. 19, followed by a multi source geofencing system by Sept. 2. The company could face penalties of $120,000 per day if it misses the September deadline, although the court can determine the final amount based on the circumstances of any delay.

The restrictions do not cover every market available on Kalshi. Contracts related to commodities, climate, economics and finance can continue to be offered to Washington residents, while users can close existing positions in categories covered by the injunction.

The court also prohibited Kalshi from advertising the restricted contracts to Washington consumers, finding that marketing wagers considered illegal under state law constituted unfair or deceptive practices.

Washington Attorney General Nick Brown sued Kalshi in March, alleging that the platform was operating an illegal gambling business in the state. Brown said the order prevents Kalshi from offering wagers across many of the categories targeted by the state’s lawsuit.

Kalshi has argued in disputes with state regulators that its event contracts fall under federal derivatives regulation because the platform operates as a Commodity Futures Trading Commission regulated exchange. The Washington case is part of a broader legal battle over whether federally regulated prediction markets must also comply with state gambling laws.