Full Steam Ahead
Online (and land-based) gambling legalization efforts are emerging in several states, but do any of them have enough momentum to get across the finish line?
The Bulletin Board
THE LEDE: Hawaii study group looks into casinos, and maybe sports betting.
NEWS: Vermont bill would authorize online lottery sales.
NEWS: SEC-CFTC discussion on crypto policy rescheduled for Thursday.
BEYOND the HEADLINE: Crypto bill could require four CFTC Commissioners.
AROUND the WATERCOOLER: How normies see online gambling.
STRAY THOUGHTS: Human nature.
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The Lede: Hawaii Work Group Discusses Gambling
Hawaii made significant progress towards legalizing sports betting last year, with different versions of State Rep. Daniel Holt’s HB 1308 passing the House and Senate. The bill was ultimately rejected in conference committee.
Separate efforts to legalize online lottery and online casino gambling were also introduced (SB 1507, sponsored by State Sen. Ron Kouchi, and HB 1434, sponsored by Nadine Nakamura), but unlike the sports betting effort, the online casino-lottery-poker bill did not gain any traction — both bills have been carried over to the 2026 session.
2026 looks to be a research-gathering year.
As reported by Hoodline Hawaii:
“The long-running fight over whether Hawaii should legalize gambling officially moved to center stage at the Capitol this week, as a new state tourism and gaming working group kicked off a months-long review that could reshape the debate. From the opening gavel, the room broke into two clear camps: law enforcement and prosecutors warning about crime and addiction, and developers and industry voices talking up jobs and tax revenue.”
The 24-member working group was approved last year (SCR 121) and is required to submit a report with findings and recommendations to the Legislature by late 2026 or early 2027 — a legalization push is unlikely until the recommendations are submitted. The group is tasked with investigating the potential impacts of legalized gambling (mainly land-based casinos), including economic benefits and social costs.
Looking at the sports betting landscape, and who is for it and who is against it (as STTP reported last year):
“The bill has the support of DraftKings, BetMGM, FanDuel, Fanatics, and local trade groups. It’s opposed by Boyd Gaming (Boyd operates Vacations Hawaii, a lucrative business that offers “convenient and affordable” flights from Hawaii to Las Vegas), the Hawaii Department of the Attorney General, the City of Honolulu, and the usual anti-gambling voices.”
News: Vermont Bill Would Legalize Online Lottery
A recently introduced bill, H 669, in Vermont would authorize the sale of online lottery products. The bill was referred to the Committee on Government Operations and Military Affairs.
Per the bill, “This bill proposes to authorize the Board of Liquor and Lottery to offer lottery tickets, products, and subscriptions through the use of mobile applications, by mobile devices, or over the internet.”
The bill doesn’t expressly mention instant win games, but the catchall term “products” will likely allow the lottery to offer draw games and online instant win games.
The bill has the support of the Department of Liquor and Lottery, which said in a statement (as reported by local press) online sales allow the lottery to meet its customers where they are at:
“Online lottery is not the same as online sports wagering. Allowing Vermont Lottery players to purchase lottery tickets online or via an app reflects the way Vermonters currently purchase other retail products whether from Amazon, or retail apps, or engage in a host of other day-to-day transactions like banking, health care appointments, restaurant reservations, and buying hunting licenses.
“Modernizing the Vermont Lottery by offering online purchases meets players where they are in the marketplace, offers enhanced safeguards, brings a new revenue stream to Vermont’s lottery retailers, and ensures the viability of the Vermont Lottery’s contributions to the Education Fund. We look forward to working with the Legislature to bring much-needed additional revenue to the Education Fund.”
Vermont is the only New England state that hasn’t legalized some form of online lottery products — Massachusetts online lottery has yet to launch and Maine’s online subscriptions require mailing in payments.
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News: SEC-CFTC Discussion on Crypto Policy
Today was supposed to be the day the Commodity Futures Trading Commission (CFTC) and Securities Exchange Commission (SEC) discussed “harmonization” as they try to “deliver on President Trump’s promise to make the United States the crypto capital of the world.”
The event has been moved back to Thursday because of this weekend’s storm:
Here is what to expect from the SEC press release on the event: “Securities and Exchange Commission Chairman Paul S. Atkins and Commodity Futures Trading Commission Chairman Michael S. Selig will hold a joint event on Tuesday, Jan. 27, from 10 a.m. to 11 a.m. at CFTC headquarters.”
The discussion, titled SEC – CFTC Harmonization: U.S. Financial Leadership in the Crypto Era will be moderated by Eleanor Terrett, Co-Founder and Host, Crypto in America.
“For too long, market participants have been forced to navigate regulatory boundaries that are unclear in application and misaligned in design, based solely on legacy jurisdictional silos,” said SEC Chairman Paul S. Atkins and CFTC Chairman Michael S. Selig. “This event will build on our broader harmonization efforts to ensure that innovation takes root on American soil, under American law, and in service of American investors, consumers, and economic leadership.”
Agenda:
10:00 – 10:05 AM: Introduction from Chairman Paul Atkins
10:05 – 10:20 AM: Opening Remarks from Chairman Mike Selig
10:20 – 10:50 AM: Fireside Chat with Chairmen Atkins, Selig
Moderator: Eleanor Terrett, Co-Founder and Host, Crypto in America
You can find a link to watch the discussion online here.
Beyond the Headline: Latest on Crypto Bill
And speaking of Crypto, and the recent s**tshow that is the CLARITY Act (STTP has been monitoring this bill given the American Gaming Association and Indian Gaming Association effort to attach a prohibition on sports contracts at prediction markets), it’s hard to argue with this take from Patrick Witt, who just happens to be the Executive Director of the President’s Council of Advisors for Digital Assets:
The bill is slated for a Thursday markup in the Senate Agriculture Committee. Of interest, Eleanor Terrett is reporting that a provision requiring at least four sitting CFTC commissioners is on the table.
Around the Watercooler
Social media conversations, rumors, and gossip.
I’ve been reporting on sports betting takes from outside the industry (in the wild, as I term it) for quite some time: here, here, here, and here, plus the Coffeezilla YouTube exposés, — Coffeezilla has 4.3 million YouTube subscribers.
Well, the chorus of voices who are increasingly fed up with the pervasiveness of sports betting isn’t dying down. Here are a few recent instances I found in my bookmarks folder, including repeat entry Saagar Enjeti:
There is also this one from Jessica Welman:
Why is any of this important? Because as STTP has been saying, the idea that federal action is, to quote John Turturro from The Big Lebowski, “Laughable man,” is a dangerous gambit.
“Over the past year or two I’ve been told many times, publicly and privately, how wrong my analysis is on a whole host of issues (big and small), and only once has one of those people later come back and said I was right. This isn’t a brag; I get things wrong, too. I’m simply pointing out that some of the loudest voices believe the industry has more control over the narrative than it actually does.”
We have negative press coverage, negative polling numbers, scandals, industry infighting, and just a general legalization hangover.
Stray Thoughts
There are two things I absolutely despise about human nature, but have learned to accept in life:
Most relationships in life are transactional (more on this in an upcoming newsletter). When you find ones that aren’t, do everything in your power to hold on to them.
Secondarily to that: Many people will smile and shake your hand, and then stick a proverbial knife in your back the moment you’re not around.