Lawmakers killed a Hawaii sports betting bill Friday, ending hopes the state could see legal sportsbooks in 2025. Proponents hope to reintroduce a legalization proposal in 2026, but Hawaii will remain without legal sportsbooks for at least another year.
Key takeways
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Hawaii's 2025 sports betting bill failed due to disagreements over tax rates and licensing fees, concerns over the regulatory body, and gambling opposition from lawmakers and community groups.
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Despite initial momentum, last-minute disputes and concerns about social harms caused the proposal to collapse, meaning Hawaii will remain without legal sports betting at least until 2026.
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Proponents, including major sportsbooks like FanDuel and DraftKings, plan to renew lobbying efforts for a 2026 bill, with Gov. Josh Green indicating he'd support a legalization measure if passed.
After previous sports betting legalization efforts gained little traction, the Hawaii sports betting bill seemed on the cusp of a surprising passage. Instead, last-minute divides over a few critical elements of the proposal, combined with many Hawaiians’ long-standing opposition to all forms of gambling, helped defeat what a week earlier seemed like a safe bet to pass.
Hawaii sports betting bill stalls
Hawaii's House of Representatives and Senate passed online sports betting bills this year out of their respective chambers. The House version didn't include key elements such as tax rates and licensing fees, requiring the Senate to include those changes and then return to the House for approval.
The Senate version set a 10% tax on gross gaming revenue and a $250,000 licensing fee, among the lowest rates of the 39 states to approve legal sportsbooks. The House and Senate couldn’t agree on these figures, one of the factors that killed the bill.
The legislation also faced opposition from multiple Hawaii government agencies. Hawaii’s gambling prohibitions mean the state doesn’t have a gaming, racing or lottery commission to regulate sportsbooks, another factor in the bill’s failure.
Problems with government oversight and opposition accompanied intrinsic opposition to gambling from inside and outside the statehouse. Some lawmakers as well as non-profit groups argued during bill deliberations that gambling would lead to bankruptcy, mental health issues and other social ills.
Hawaii sports betting was also opposed by a group that later said it would manage a sportsbook in the state if permitted to do so. Boyd Gaming, a Nevada-based casino operator that manages multiple downtown Las Vegas properties with large Hawaiian customer bases, argued against the proposal during legislative hearings.
The company said weeks later in its corporate earnings call it would look to launch a mobile sportsbook if the bill passed.
With the 2025 bill’s failures, Hawaii will remain one of 11 states that hasn’t approved some form of legal sports betting. Hawaii and Utah are the only states without a legal lottery, horse track or commercial casino.
Hawaii sports betting future
Hawaii’s regular legislative session ends May 2 and it’s exceedingly unlikely lawmakers will address sports betting before the 2026 session convenes in January of next year. Still, 2025’s near miss sets up proponents for another push in 2026.
FanDuel, DraftKings, BetMGM and Fanatics led lobbying efforts. This quartet will likely work with lawmakers ahead of the the 2026 session to resolve tax and regulatory concerns that helped kill the proposal.
Hawaii can't afford to ignore the illegal sports betting market any longer. A legal, regulated market would provide real safeguards and protections for players while generating millions in revenue for Hawaii.
— Sports Betting Alliance (@SBAllianceUS) April 25, 2025
It's time to get this right. Read more from @StarAdvertiser:…
Gov. Josh Green also indicated he'd sign a sports betting legalization bill if it reaches his desk next year.
The 2025 bill required at least four licensed sportsbooks. Along with the four aforementioned operators, other major national brands including bet365, BetRivers, Caesars and ESPN BET would likely be interested in the state.
Though Hawaii has one of the United State’s smallest per capita populations, it has one of the country's highest income levels and annual visitor totals, making it an attractive market for legal books. Hawaii also sees nearly three million visits each year from California, a state that likely won’t see legal sports betting until at least fall 2027.
