Despite multiple years of no significant action on gambling legislation in Hawaii, some lawmakers are once again pursuing sports betting and online casinos.
Rep. Daniel Holt has renewed his Hawaii sports betting efforts, filing HB 1308 to legalize the industry. Sen. Kim Decoite filed the Senate companion bill, SB 1569. If the legislation passes, the Department of Business, Economic Development and Tourism would regulate the industry.
Additionally, Decoite also introduced SB 1572, which would create the Hawaii State Sports Wagering Commission within the department. For now, gambling remains illegal in Hawaii.
Hawaii sports betting details
The first pair of bills would legalize at least four online operators and tax sports betting revenue at 10%.
Decoite’s SB 1572 would allow applications from sportsbooks licensed in at least three states but does not provide a minimum number of licenses. It also explicitly would allow prop bets, college wagering and exchange wagering.
It also would legalize in-person sports betting. Decoite’s bill would create a 15% tax on sports betting revenue.
Online casino also in bill
Sen. Ron Kouchi introduced SB 1507, which would create the Hawaii Lottery and Gaming Corp.
If passed, the agency could contract operators to provide online casino games.
The legislation would leave the agency tax-exempt. It would also be able to “offer free-play games and sweepstakes for Hawaii-related prizes” to users outside of Hawaii.
Hawaii sports betting attempts
Hawaiian lawmakers regularly introduce legislation attempting to legalize various forms of gambling in the Aloha State. Hawaii is one of two states without any form of legal gambling.
Last year, the House Committee on Economic Development advanced a sports betting bill. Another bill that would have created a hotel and casino on Oahu also passed the committee.
That was the first time a gambling bill had moved since 2019. The Sports Betting Alliance estimated last year that the state could generate up to $9 million annually from sports betting.
Opposition in Hawaii
While gambling bills are regularly proposed in the Aloha State, even the proponents give up on their legislation.
There is strong opposition in sections of the heavily Democratic-controlled legislature. Many of the arguments suggest the industry preys on the state’s low-income populations.
“Numerous studies have confirmed gambling caused problems such as bankruptcy, theft, embezzlement, suicide, child abuse and neglect, divorce, incarceration and homelessness,” Rep. Elijah Pierick said during a hearing last year.