Sports Betting in Hawaii? Lawmakers Push for a Big Change

Hawaii has long been an outlier. While almost every other state has embraced some form of legalized gambling, the Aloha State has remained on the sidelines. No casinos, no sportsbooks, no lottery—just ocean views and strict gaming laws. But that could change soon.

Several state lawmakers are making another push to bring sports betting and online gambling to the islands. Multiple bills have been introduced in the Hawaii Legislature, each with different approaches to legalizing gaming. Will 2024 finally be the year that Hawaii joins the betting scene?

Bills Targeting Sports Betting and Fantasy Contests

A pair of bills—HB1308 and SB1569—aim to legalize online sports betting and fantasy sports in Hawaii. Both would fall under the oversight of the state’s Department of Business, Economic Development and Tourism. If passed, these measures would tax gross receipts at 10%, ensuring that the state gets a cut of the action.

State Sen. Kim Decoite (D) has also introduced SB1572, a bill that would establish the Hawaii State Sports Wagering Commission. The proposed commission would regulate sports betting with a slightly higher tax rate of 15%. One key difference? This bill does not include fantasy sports but would allow retail and online sportsbooks.

Notably, Decoite’s bill would offer licenses only to operators that are already active in at least three other states. Unlike some jurisdictions that cap the number of licenses, SB1572 would have no minimum number of approved operators.

Meanwhile, SB373 is also on the table. This measure focuses specifically on legalizing fantasy sports, a market that remains a legal gray area in the state.

Online Gambling and Lottery Efforts

The push for legalized gaming in Hawaii doesn’t stop at sports betting. Senate President Ron Kouchi (D) is championing SB1507, a bill that would create the Hawaii Lottery and Gaming Corporation. This proposed entity would oversee a variety of online gaming options, including:

  • Online lottery ticket sales
  • Poker and casino-style games
  • Sweepstakes gaming

Interestingly, Kouchi’s bill does not include sports betting. However, it does pave the way for Hawaii to join the Multi-State Internet Gaming Agreement (MSIGA), which allows poker players from different states to pool their wagers and compete across borders. Given Hawaii’s relatively small population of 1.4 million, joining a shared liquidity market would be a game-changer for online poker.

Why Now? The Economic Landscape

Hawaii’s lawmakers have considered gambling before, but previous efforts stalled. What’s different this time?

The state is currently projecting billion-dollar budget surpluses for the next four years, so the push for gambling isn’t being driven by immediate financial distress. But the long-term outlook isn’t all sunshine and rainbows. Officials are keeping a close eye on several economic concerns:

  • Maui wildfire recovery: The devastating fires of 2023 left lasting impacts on residents, infrastructure, and government budgets.
  • Declining tax revenue: While tourism remains strong, state tax collections have been trending downward.
  • Rising costs: Inflation and increased government spending could create financial pressure down the road.
  • Shrinking population: Like many states, Hawaii is seeing a slow but steady decline in residents, which could impact future revenue streams.

With these challenges on the horizon, some lawmakers see gambling as a way to bring in new revenue without raising taxes.

The Odds of Passage

While these bills have been introduced with optimism, their path to approval remains uncertain. Hawaii’s political landscape has historically been resistant to gambling expansion. Cultural concerns and a general preference for a tourism-based economy have kept gaming efforts at bay.

Opposition groups argue that gambling could bring unwanted social consequences, including addiction and increased crime. Others worry about the potential impact on Hawaii’s unique culture and identity.

Still, attitudes toward gambling are shifting nationwide. More than 35 states have already embraced legal sports betting, and major gaming operators are eager to enter new markets. With billions of dollars at stake, the conversation in Hawaii is far from over.

Will this be the year Hawaii finally opens the door to legal sports betting and online gaming? That’s still up in the air, but one thing is certain—this debate isn’t going away anytime soon.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *