Stakeholders in Hawaii are making progress on their study of legalizing sports betting and other forms of gambling.
Lawmakers created the Tourism and Gaming Working Group through a resolution last year, while a Hawaii sports betting bill fell short in conference committee. The group met for the fourth time last week, working toward a recommendation fro gambling policy in the Aloha State.
The group must turn in its findings before the 2027 legislative session begins. Last week’s meeting heard testimonies on the potential economic benefits of legalizing gambling in the state.
Big money for Hawaii in gambling?
Tres York, vice president of government relations at the American Gaming Association, told the group of 24 lawmakers and stakeholders, that gambling supports 1.8 million jobs across the US. York said it has also generated approximately $125 billion in revenue and contributed $52 billion in state taxes.
York said the taxes can be sued to help fund education, infrastructure, public safety and other governmental priorities.
Sen. Lynn DeCoite, a co-chair of the group, expressed a personal connection and a relatively negative view of gambling. The group was vocal about potential social costs like increased crime and gambling addiction.
Still, DeCoite said there are potential positives, like potential funds for disaster relief.
Not just working on sports betting in Hawaii
The Tourism and Gaming Working Group is a 24-member panel that includes lawmakers, law enforcement officials and gambling industry employees.
Along with sports betting, they are also tasked with figuring out if a casino should fit in the new 98-acre New Aloha Stadium Entertainment District.
The group has met three other times, including in January, when Department of Law Enforcement Director Mike Lambert estimated Hawaiians wager up to $800 million illegally each year. The group plans a meeting each month through September.
2026 Hawaii sports betting legislation
There were two sports betting bills, House Bill 2570 and Senate Bill 3303, introduced this year, each requiring the state to issue at least six sports betting licenses. Operators would pay a $500,000 initial license fee for five years.
It would have set the sports betting revenue tax at 15%. It also set other components, like a ban on collegiate events involving Hawaii-based teams.
The legislation, however, stalled out and did not advance as far as last year.
Other Hawaii gambling bills in 2026
Lawmakers introduced a bill, House Bill 1527, to ban gambling in the new Aloha Stadium District.
There is also House Bill 2198 to prohibit prediction markets from operating in Hawaii.
Another bill, House Bill 1945, would have allowed gambling on cruise ships in Hawaiian waters at a 20% tax.
All the bills missed crucial deadlines or appear stalled with the session ending May 8.
