Are Prediction Markets Legal in Hawaii?

Last verified: 2026-07-15

Available Scope: Prediction markets generally

Currently available — Hawaii has taken no action

Hawaii has not joined the roughly two dozen states currently disputing prediction-market legality. That leaves the platforms operating normally for Hawaii residents right now, subject to each platform's own identity-verification and funding requirements.

This is not legal advice. Prediction-market legality is contested and changes quickly. This page reflects publicly reported facts as of the last-verified date above and links to a primary or trade-press source below. Consult a licensed attorney in Hawaii and check each platform's own current state-availability page before trading.

What This Means for Kalshi vs. Polymarket in Hawaii

Hawaii has a pending bill or study, but no enacted restriction, so both Kalshi and Polymarket currently operate the same way here: normal signup, normal funding, no state-specific block on either platform's contracts. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.

The Full Picture in Hawaii

HB 2198 (introduced Jan. 28, 2026) would expand the state’s gambling definition to explicitly cover prediction markets on politics, sports, death, and catastrophe events. Not enacted as of this writing; no enforcement action taken.

Source: RotoWire — legal timeline Last verified: 2026-07-15

Why Is This Even Contested? The Federal-vs-State Fight

Prediction markets sit at the intersection of two legal regimes that currently disagree. Kalshi and Polymarket US register their contracts with the CFTC as swaps or event contracts on a federally designated exchange, and argue that federal law preempts conflicting state gambling law. State gaming regulators counter that sports-related contracts — betting on who wins a game, a point spread, or a player prop — are functionally sports betting, which most states require a separate license to offer. Federal appellate courts are currently split: the Third Circuit ruled for Kalshi on preemption grounds (April 6, 2026), while a federal judge in the Southern District of New York ruled against Kalshi on the same underlying question (July 8, 2026). This is genuinely unresolved law, not a settled "CFTC means legal everywhere" fact — treat any claim that federal registration alone guarantees legality in every state with skepticism.

The dispute or restriction covers prediction markets broadly, not just sports contracts.

Hawaii-Specific Timeline

Entries from our full regulatory timeline that specifically reference Hawaii.

2026-01-28

Hawaii introduces HB 2198

Hawaii introduces a bill explicitly defining prediction market platforms as illegal gambling. Not enacted as of this writing.

Source: RotoWire — legal timeline

Frequently Asked Questions

Is Kalshi legal in Hawaii?
Hawaii has not joined the roughly two dozen states currently disputing prediction-market legality. That leaves the platforms operating normally for Hawaii residents right now, subject to each platform's own identity-verification and funding requirements. HB 2198 (introduced Jan. 28, 2026) would expand the state’s gambling definition to explicitly cover prediction markets on politics, sports, death, and catastrophe events. Not enacted as of this writing; no enforcement action taken.
Is Polymarket legal in Hawaii?
The same status applies to Polymarket as to Kalshi in Hawaii -- state actions in this category virtually always name multiple platforms rather than one exclusively. Hawaii has a pending bill or study, but no enacted restriction, so both Kalshi and Polymarket currently operate the same way here: normal signup, normal funding, no state-specific block on either platform's contracts. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.
Has Hawaii taken any action against prediction markets?
Not as of the last-verified date (2026-07-15). HB 2198 (introduced Jan. 28, 2026) would expand the state’s gambling definition to explicitly cover prediction markets on politics, sports, death, and catastrophe events. Not enacted as of this writing; no enforcement action taken.
Where can I check the latest prediction market status for Hawaii?
This page cites its primary source directly (RotoWire — legal timeline) and was last verified 2026-07-15. For the full 51-row tracker and the complete regulatory timeline, see the Odds Reference prediction markets legal tracker -- this is a fast-moving area and any single page, including this one, can lag the latest court filing.

Related Reading

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