The House Bill 2198 has been introduced in Hawaii, which would see prediction markets be included in the definition of gambling, making them banned in the US state.
The summary of the bill reads as: “Includes prediction markets in the definition of gambling by specifying that the purchase, sale, or financial speculation of securities or commodities on the outcome or future contingent events related to sports, contests, people, politics, catastrophe, and death.”
It was introduced on Monday, January 26 and is a partisan bill by Democrat representatives, with 16 people listed as sponsors. The bill is still very much at the beginning stages and it is pending introduction with no hearings scheduled as of yet.
What does the Hawaii prediction markets bill 2198 mean?
In a larger document, the House Bill 2198 has been detailed further as it states the purpose of this would be to update Hawaii’s gambling laws to expressly prohibit prediction event contracts relating to sports, contests, people, politics, catastrophe, and death.
It also suggests that recent developments in the consumer-focused sector of the financial market “have allowed for individuals to create financial incentives and motivations for the occurrence of events” which have been listed above.
The legislature “finds that not only do some or all of these types of contracts violate moral and ethical standards, but they also prey upon a gap in Hawaii’s gambling laws that permits contracts for the purchase and sale at a future date of securities or commodities.”
With the bill still in its infancy, this could be one to watch and it comes at a time when prediction markets are facing difficulties in some states despite the rise of the industry.
In Louisiana, the Gaming Control Board is one of the latest states to take issue with prediction markets introducing sportsbooks. In a press release, they stated it now views sporting event contracts and “certain other event contracts” as a violation of state gambling laws.
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