Hawaii is one of the few states that doesn’t allow any kind of gambling. While that's unlikely to change, some legislators want to give legalized sports betting and iGaming another try.
They filed three separate sports betting bills in Hawaii's state legislature Wednesday. SB1572's aim is to establish “a legal, safe, and regulated framework for sports wagering.” It looks to “combat illegal gambling activities, protect consumers, promote responsible gambling practices and mitigate associated risks, and generate additional revenue for the State to allocate to public initiatives, including education, housing, and infrastructure.”
Specifically, SB1572 would establish the Hawai’i State Sports Wagering Commission within the Department of Business, Economic Development, and Tourism. Meanwhile, HB1308 and its senate counterpart SB1569 would give the Department of Business, Economic Development and Tourism the authority to regulate sports betting.
An additional bill, SB1507, would establish the Hawai’i Lottery and Gaming Corporation to conduct and regulate lottery, poker, and casino games. Under the best of circumstances, it will take a while before the bills have a chance to become law. However, legalized gambling is a likely an uphill battle in Hawaii.
Hawaii’s recent failed attempts to legalize gambling
Given the circumstances, 2021 was the year legalized gambling had its best shot in Hawaii. Hawaii’s major industry is tourism and the pandemic was really doing a number on the state’s economy.
Faced with significant budget shortfalls, Hawaii legislators proposed several gambling bills to generate much needed revenue. In 2021, lawmakers proposed three bills to introduce a state lottery. One bill wanted to build a casino on top of the Hawaii Convention Center in Oahu. And yet another bill offered several gambling-related options, including legalized online gambling, a state lottery, and potentially two resort-style casinos in Oahu. None passed.
In 2023, a proponents introduced a bill that would have made sports betting and poker legal in regulated local establishments. Supporters thought if residents had a legal option, it would reduce the number of illegally run gambling rooms. One of the bill’s sponsors explained why they didn’t, instead, consider a proposal that would legalize betting by opening it up to established operators:
“The reason we are concerned about DraftKings, FanDuel is we don’t want a mainland corporation coming in and just taking all the money,” Rep. John Mizuno said.
Although that bill failed to gain traction, a law did pass last year that cracked down on illegal gambling. SB2197 made it easier for law enforcement to go after illegal gambling establishments.
Gambling is popular in Hawaii. There are packed flights between the state and Las Vegas every day. There are also many illegal gambling rooms and sportsbooks on the islands. None of those options, however, put money in the state’s coffers. If any of the bills filed this week make it into law, that could change. But it’s admittedly a longshot.
