Could sports betting soon become legal in the Aloha State?
A bill to legalize at least four online sportsbooks is gaining momentum after the House Judiciary and Hawaiian Affairs Committee was approved by a 6-4 vote. HB 1308 now heads to the Committee of Finance, where legislators hope to clear another hurdle in the pursuit of sports gambling. It comes amidst support from a companion bill, SB 1569.
Supporters like Rep. Daniel Holt claim legislation would help limit illegal betting activities and generate more revenue, with the proposal calling for a 10% tax on sports betting. Opponents, however, worry that increased access will only lead to more problem gambling.
It’s been a point of emphasis for the Honolulu City Council, which last year established a task force to crack down on illegal game room operations.
Sports betting is now legally operative in 38 states plus Washington, D.C., with Missouri set to become the 39th state this summer after receiving approval last November. Seven states also offer legalized iGaming, though close to a half-dozen others have active proposals on the table.
Hawaii, which has among the strictest gambling laws in the U.S., saw lawmakers shoot down a casino proposal last week. SB 893 would have created the Hawaii Gaming Control Commission to oversee casinos in the new Aloha Stadium Entertainment District and Hawaii Convention Center on a 20-year license.
Estimates say legal sports legalization could generate up to $37 million annually in tax revenue. However, for outspoken critics like Hawaii deputy assistant district attorney David Williams and Sen. Donna Mercado Kim, the positive financial effects don’t outweigh any concerns.
“Legal gambling will increase the risk of adverse financial effects on Hawaii citizens,” Williams said in his testimony.
Kim, while supportive of increased regulations to combat illegal betting, cautioned that the increased revenue will only go so far for most Hawaiians.
“For me, it’s not necessarily the money, but to stop the illegal wagering, to make it safe so people know that they can do it and not have their fingers cut off if they don’t pay or whatever,” Kim said. “And if there is revenue from it out there, then fine. But I don’t just want people to think this is panacea. Because sports betting doesn’t generate that much revenue coming out of it.”
SB 1569 calls for a $250,000 licensing fee for operators. Gaming giants BetMGM and DraftKings have both submitted testimonies in favor of legislation.
Another big backer is Democratic Gov. Josh Green, who in a statement said he “supports careful exploration of sports wagering in Hawaii, provided that proper safeguards are in place to prevent abuses.”
While the industry continues to grow exponentially throughout the country — nearly every state has explored legislation to some degree since 2018 — more steps must be taken before sports betting becomes a reality in Hawaii. The Hawaii legislative session runs until May 2, which suggests we’ll soon have a better idea if the state may budge from its traditionally conservative stance on sports betting.
Doug is a seasoned sports writer/editor with bylines for the New York Times, Associated Press and CBS Sports. He also has extensive experience in the betting industry, including work for Point Spreads. Prior to that, he covered UConn women's basketball and football for Hearst Connecticut Media.
