Hawaii Nears Online Sports Betting Legalization Despite Opposition

Hawaii is on the verge of a significant shift in its long-standing stance against gambling, as a bill to legalize online sports betting moves closer to approval. While it won’t take effect in time for this year’s NCAA Final Four, House Bill 1308 (HB 1308) has made unprecedented progress through the state legislature, garnering support from lawmakers who argue that regulation is the only way to control an already prevalent practice.

On Wednesday, the Senate Ways and Means Committee became the sixth legislative body to approve the bill, voting 11-2 in favor of advancing it to the full Senate, according to Hawaii News Now. Previously, the bill had successfully passed through multiple House committees and was approved by the House floor with a 35-15 vote.

The latest Senate amendments, introduced by Ways and Means Chair Sen. Donovan Dela Cruz, reinstated provisions from the House version, including a 10% tax on gross gaming revenue and a $250,000 licensing fee per operator. The effective date was set for July 1, 2025, a move designed to allow the House to approve Senate modifications without requiring further negotiations.

If enacted, the law would require at least four online sportsbooks to operate in the state, ensuring a competitive market. Industry giants such as BetMGM, DraftKings, FanDuel, and Fanatics have shown strong interest in securing licenses. The bill also includes safeguards such as a prohibition on betting on youth sports and regulation under the Hawaii Department of Law Enforcement.

Supporters Argue for Regulation, Critics Fear Social Consequences

Advocates of the bill contend that sports betting is already happening in Hawaii through illegal channels. They argue that a regulated system would provide consumer protections, generate tax revenue, and help fund gambling addiction treatment programs.

State Sen. Glenn Wakai emphasized the need for oversight, stating, “There’s already a prevalence of gambling here, and I think this bill addresses that and helps those who unfortunately fall into addiction.”

The legislation is projected to generate approximately $20 million annually in tax revenue, a relatively modest amount in the context of the state budget but still a valuable resource for public programs. Support has also come from local unions and businesses that see economic opportunities in the sector.

However, opposition remains strong. Honolulu Prosecutor Steve Alm and the state attorney general’s office have voiced concerns over potential increases in problem gambling, crime, and youth participation. Alm, speaking before the Senate Consumer Protection and Economic Development Committees in March, warned, “I’m afraid that in a couple of years we are going to have a whole generation of problem gamblers, typically young men. So I think this would just be opening up a Pandora’s box.”

Sen. Lorraine Inouye echoed these concerns, citing calls from constituents, particularly women, who fear that expanded gambling could negatively impact their families. Sen. Sharon Moriwaki questioned the bill’s economic promises, stating that more research is needed before such a significant change is enacted.

Native Hawaiian Community Weighs In

A crucial aspect of the debate revolves around the potential benefits for Native Hawaiians. The Council for Native Hawaiian Advancement (CNHA) has expressed interest in securing a license should the bill pass, drawing comparisons to Native American tribes who have successfully leveraged gambling revenue on the mainland.

“If the law allows anyone to open a gaming facility or gaming operations, then absolutely, a qualified Native Hawaiian organization could take part in that,” said CNHA administrator Tyler Gomes. He emphasized that legal gambling could provide vital economic opportunities, including employment and financial support for Native Hawaiian organizations.

CNHA is set to hold its next convention at the Tulalip Casino in Washington, a Native American-owned property, further signaling their investment in the gaming sector. Should the bill become law, CNHA and other Native Hawaiian entities may be well-positioned to benefit from Hawaii’s first legal sports betting operations.

What’s Next for the Bill?

Despite the bill’s progress, final approval remains uncertain. The Senate must still pass the amended version, and the House must concur with the changes before it can be sent to Gov. Josh Green for approval. While Gov. Green has expressed cautious openness to sports betting, he has not explicitly endorsed HB 1308. He has emphasized the importance of regulatory safeguards to mitigate potential negative social impacts.

The legislative session is set to conclude on May 2, leaving lawmakers with less than a month to finalize the bill’s details and secure its passage. If approved, Hawaii would become the 40th U.S. jurisdiction to legalize some form of sports betting, joining states like New York, Nevada, and New Jersey in embracing the industry.

For now, the odds are in favor of legalization, but key negotiations between lawmakers and potential interventions by the governor could still influence the final outcome.