House Bill 2198 was introduced in Hawaii, which would include prediction markets in the definition of gambling, making them banned in the US state.
The bill’s summary reads: “Includes prediction markets in the definition of gambling by specifying that the buying, selling, or financial speculation of securities or commodities on the outcome or contingent future events relating to sports, contests, people, politics, disasters, and death.” »
It was introduced Monday, January 26, and is a partisan bill authored by Democratic representatives, with 16 people listed as sponsors. The bill is still in its early stages and is awaiting introduction with no hearings scheduled at this time.
What does House Bill 2198 mean about Hawaii prediction markets?
In a larger documentHouse Bill 2198 was more detailed as it states its purpose would be to update Hawaii’s gambling laws to expressly prohibit contracts to predict events related to sports, contests, people, politics, disasters, and death.
It also suggests that recent developments in the consumer-driven financial market sector “have enabled individuals to create financial incentives and motivations for the occurrence of the events” listed above.
The legislator “finds that not only do some or all of these types of contracts violate moral and ethical standards, but that they also take advantage of a gap in the Gambling Laws in Hawaii which authorizes contracts for the purchase and sale at a later date of securities or commodities.
While the bill is still in its infancy, it could be one to watch and it comes at a time when prediction markets are facing challenges in some states despite the industry’s rise.
In Louisiana, the Gaming Control Board is one of theStates test their disagreement with prediction markets introduction to sports betting. In a press release, they said they now consider sporting event contracts and “certain other event contracts” to be a violation of the state’s gambling laws.
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