A Washington state judge has ordered prediction-market operator Kalshi to stop offering a wide range of wagers to people in the state, including bets on sports, elections, entertainment and technology. The preliminary injunction is significant because it rejects, at least for now, Kalshi’s argument that federal regulation by the Commodity Futures Trading Commission overrides state gambling laws.

The court found Washington is likely to succeed in claims that Kalshi’s platform and advertising violate state gambling and consumer-protection laws, noting it is neither licensed by the state Gambling Commission nor registered to do business there. Kalshi must introduce IP- and residency-based geofencing by 19 August, followed by a more comprehensive system by 2 September, or face penalties of up to $120,000 a day; users may still close existing positions. Kalshi said it disagrees with the ruling and is considering legal options, amid wider disputes between states, the federal government and prediction-market platforms.