Hawaii, traditionally known for its anti-gambling stance, is considering legalisation of online casino gaming and sports betting via new legislations.
Over the years, there have been several efforts to bring gambling to the state, but all have met with resistance. Hawaii is one of just two states in the US, along with Utah, where all forms of gambling are illegal.
Two companion bills that garnered attention were HB 1308 and SB 1569. These bills aimed to legalise both sports betting and fantasy sports under the regulation of the Department of Business, Economic Development, and Tourism.
Key Features of HB 1308 and SB 1569
Another bill was introduced by Senator Kim Decoite, SB 1572. The bill proposes the establishment of the Hawaii State Sports Wagering Commission within the Department of Business, Economic Development, and Tourism. The commission would oversee sports betting in the state.
While the bill shares many features with the companion bills, it has some key differences. It shares common provisions like only considering sportsbooks that are currently licenced in at least three US jurisdictions; allowing prop bets, among others.
However, there are also some key differences. This bill proposes legalising both retail and online sports betting. It also proposes a higher tax rate of 15 percent of AGR. Unlike HB 1308 and SB 1569, SB 1572 does not include fantasy sports, and does not stipulate a minimum number of licencees.
While the previous bills focus mainly on sports betting, Senator Ron Kouchi introduced SB 1507. It takes a broader approach to gambling legalisation.
SB 1507 aims to establish the Hawaii Lottery and Gaming Corporation, which would be responsible for offering various forms of online gambling, including poker, lottery, and casino games.
While it does not include sports betting, it proposes a broad expansion of online gaming options for residents and tourists. Multi-state player would be allowed, and it would let the corporation offer “legally compliant free-play games and sweepstakes with Hawaii-related prizes” to tourists.
The Hawaii Lottery and Gaming Corporation would be tax-exempt in all activities. This bill, to take effect on 1 July, also proposes the establishment of a Lottery and Gaming Special Fund to ensure that the revenue generated by online gaming is reinvested into the community.
Another bill is under consideration, SB 373. It is a standalone measure to legalise fantasy sports in Hawaii, making it a separate category from illegal gambling. This bill could pave the way for broader gambling reforms in the state.
Despite the aforementioned attempts at legalisation, Hawaii has a history of rejecting similar efforts. One such bill to legalise online sports betting was quickly shut down in 2024. Previous attempts have met with similar outcomes.
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