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HB2198
HOUSE OF REPRESENTATIVES
H.B. NO.
2198
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to prediction markets
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The legislature finds 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 involving athletics, politics, catastrophe, and death.
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The legislature also 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 permit contracts
for the purchase and sale at a future date of securities or commodities.
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Accordingly, the purpose of this Act
is to update Hawaii's gambling laws to expressly prohibit prediction event
contracts relating to sports, contests, people, politics, catastrophe, and
death.
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SECTION
2
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Section
712-1220, Hawaii Revised Statutes, is amended by amending the definition of
"gambling" to read as follows:
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""Gambling".
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A person engages in gambling if he stakes or
risks something of value upon the outcome of a contest of chance or a future
contingent event not under his control or influence, upon an agreement or
understanding that he or someone else will receive something of value in the
event of a certain outcome.
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Gambling
does not include bona fide business transactions valid under the law of
contracts, including but not limited to contracts for the purchase or sale at a
future date of securities or commodities, and agreements to compensate for loss
caused by the happening of chance, including but not limited to contracts of
indemnity or guaranty and life, health, or accident insurance[
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]
;
provided that gambling does include the purchase, sale, or financial
speculation upon securities, commodities, or other similar financial products
where the outcome or future contingent event relates to the following:
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(1)
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Sports,
including an outcome that relates to a specific athletic event or non-athletic
sporting event or events within an athletic event or non-athletic sporting
event or events;
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(2)
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Contests,
including an outcome that relates to a game, scheme, or promotion where a prize
or something of value is awarded based on skill, merit, performance, or chance,
regardless of whether an entry fee is required;
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(3)
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People,
including an outcome that relates to an event or events happening to a natural
person or persons;
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(4)
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Politics, including
an outcome that relates to a federal, state, or county, election, or the
actions or conduct of the federal, state, or county government and its
agencies, employees, and officers;
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(5)
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Catastrophe, including
an outcome that relates to war, national or state emergencies, natural or
human-made disasters, acts of terrorism or violence, or public health crises; and
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(6)
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Death,
including an outcome that relates to death, assassination, or mass casualty
events.
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SECTION 3.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 4.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
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Report Title:
Gambling;
Prediction Markets
Description:
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.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.