It’s slow going in the Aloha State.
Hawaii isn’t legalizing sports betting this year and it may not legalize it next year. But the year after that? Well, maybe not — actually, probably not, given Hawaii remains one of only two states with no legal gambling — but lawmakers should have a little more information to rely on by then to help them decide.
House Concurrent Resolution 70 was adopted by both chambers of the Hawaii legislature late last month, which will get the ball rolling on a study of the possible legalization and regulation of online sports betting in the island state.
However, that study doesn’t have to be turned in until 20 days before the Hawaii legislature convenes for its 2026 regular session. The original resolution proposed getting the research done before the 2025 session, but the Department of Business, Economic Development and Tourism (DBEDT), which would convene a working group to do the analysis, wanted more time.
“We have vacancies for our economist positions,” DBEDT director James Kunane Tokioka said in a statement to a Senate committee. “We would recommend extending the deadline to 20 days before the legislative session of 2026, and we will conduct the study in house with the hope that we will fill the economist positions in the next few months. We are following a number of other bills and resolutions that require DBEDT to do studies, and we will cooperate as long as our primary functions and responsibilities are not impacted.”
Study time
The Senate’s Energy, Economic Development, and Tourism committee agreed with the suggestion and amended the resolution — Tokioka warned the earlier timeline would require $200,000 in state funds to hire a research company — and the amended measure was adopted by the chamber on April 22.
H.C.R 70 was then transmitted back to the House of Representatives, where it originated, with the changes agreed to and the amended resolution adopted on April 26. A similar, House-only resolution was also adopted that used the 2025 timeline, but the House then agreed to the amended concurrent resolution calling for the study ahead of the 2026 session.
The study’s approval could help convince some Hawaii lawmakers, as a majority in the legislature remains skeptical of legal sports betting. Several wagering-related bills were introduced this year and bounced around the legislature for a bit before dying after they missed a key deadline.
Sports betting proposals in the Hawaii legislature currently include:
— Geoff Zochodne (@GeoffZochodne) February 1, 2024
-a legal monopoly for online sports betting and poker
-a licensing scheme that could allow multiple sportsbook operators
-a pilot project with $30M licensing feeshttps://t.co/wZGJzLei9F
So, in the absence of any actual legalization, lawmakers are instead opting for further study of the matter. The approved resolution, which does not require any action from the governor and is now official, requests that DBEDT convene a "Sports Wagering Working Group" to conduct the analysis.
Members will include DBEDT's director or a designee, the Senate president and House speaker or their designees, someone from the law enforcement community, and two delegates from the Sports Betting Alliance, the industry group consisting of BetMGM, DraftKings, FanDuel, and Fanatics.
The Sports Wagering Working Group is being asked to draw on the experience of other states with online sports betting and "identify, assess, or recommend" revenue estimates, a regulatory structure, and consumer protections (including responsible gaming measures).
Money will likely play a big factor in any future debates around sports betting in Hawaii.
“The problem with sports gambling or gambling, in a sense, the money doesn't really all stay here,” Republican Sen. Kurt Fevella said during an April 17 committee meeting. “I'm selfish. If we’re going to do something with gambling, or organizing any kind of sports gambling, I want all the money to stay here.”
At the moment, though, Hawaii is receiving zero dollars from sports betting, even though it is already happening. One of the things the working group will consider is how much of the ongoing illegal and unregulated sports betting going on in Hawaii can be shifted to one or more bookmakers under state oversight.
H.C.R 70’s preamble states that “by channeling this activity into a legal market and building a robust, responsible, and regulated market for sports wagering, Hawaii stands to gain millions of dollars each year in additional tax revenue.”
Fantasy flops
A representative from DraftKings, citing American Gaming Association estimates, said an estimated $277 million in illegal wagering is already happening in Hawaii every year.
“Nearly all the illegal sports wagers in Hawaii are placed online through websites, where sophisticated illegal operators capitalize on the popularity of this form of entertainment,” wrote Rebecca London, senior government affairs manager for DraftKings, in written testimony to the Senate’s Energy, Economic Development, and Tourism Committee. “Across the country, states are bringing this activity into a legal, regulated market that mandates robust consumer protections – including responsible gaming tools and messaging, responsible advertising, access to player protection tools, and integrity monitoring.”
One suggested change to H.C.R. 70 that wasn’t made came from PrizePicks, which asked for an amendment to the resolution to add paid fantasy sports contests to the study. PrizePicks does not operate in Hawaii, and it may not for years now.
“Americans of all walks of life love fantasy sports, and that passion is the core of what PrizePicks and many other fantasy sports operators provide to many Americans in a majority of states,” said Shane Saum, director of regulatory and government affairs for PrizePicks, in written testimony to the Senate committee. “Unfortunately, many of these operators do not offer fantasy sports in Hawaii due to the state's prohibition on paid fantasy sports.”
