The Hawaii House Committee on Consumer Protection and Commerce has unanimously moved forward a bill that would classify a broad range of prediction markets as illegal gambling under state law, marking one of the first legislative efforts in the U.S. to restrict these platforms.
House Bill 2198 was introduced in late January and would amend Hawaii’s existing gambling statutes by expanding the legal definition of gambling to include financial speculation on real-world events, such as sports outcomes, contests, political events, disasters and other future-contingent results previously exempt under current law.
Under the proposed changes, activity currently offered by prediction market platforms which often involve buying and selling contracts based on the likelihood of future events would be treated as gambling and prohibited within the state. The measure is intended to close legal loopholes that have allowed such markets to operate without falling under traditional gambling regulations.
The bill now advances toward further legislative review, with a potential effective date of 1 July 2026 if it completes the legislative process. Supporters of HB 2198 argue the change is necessary to align Hawaii’s gambling laws with evolving financial products that resemble wagering, while opponents in the broader prediction market space may challenge the restrictions if enacted.
