Hawaii Edges Closer to Legal Gambling

Lawmakers in Hawaii are now considering bills that would legalize retail and internet gaming, which would mean that the state might soon exchange its long-standing prohibition on gambling for a share of the lucrative casino and sports betting industry. Despite its reputation as one of the most anti-gambling regions in the United States, Hawaii is now looking at legislation that might legalize internet gambling, sports betting, lotteries, and casinos.

Supporters of this bill argue that the enormous tax income that gambling may bring in could be used to pay for important public services like healthcare, education, and infrastructure. Among the proposals on the table is a plan to establish a Hawaii Gaming Control Commission. The commission would oversee casino operations, enforce regulations, and implement a 15% tax on gross gaming receipts. Part of this revenue would also fund a state-backed responsible gambling program designed to mitigate potential addiction and social risks linked to the industry.

A Wide Net

Outstanding suggestions include one supported by Senator Glenn Wakai that details a licensing strategy for two prominent sites. That is, the Hawaii Convention Center and the New Aloha Stadium Entertainment District both of which would have a roadmap that would extend 20 years. If this proposal is approved, Hawaii will be able to welcome its first legal casino sites, which will undoubtedly bring in a flood of additional tourist revenue.

But it is not just brick-and-mortar casinos on the agenda. Some additional bills, like SB 1507, propose the creation of the Hawaii Lottery and Gaming Corporation, a regulatory body that would centrally manage lottery games, online poker, fantasy sports, internet gambling, and retail casinos.

Beyond casinos, sports betting has emerged as a hot topic in the legislature. Senate Bill 1572 is generating significant industry attention, as it proposes the formation of the Hawaii State Sports Wagering Commission. As per the current draft, licensed sports betting operators would be taxed at a 15% rate, helping funnel new revenue into state programs.

The Road Ahead

While the proposed Bills still face committee reviews, public input, and potential amendments, the conversation around legal gambling in Hawaii is more active than ever. Whether the state will embrace casino gaming and sports betting or maintain its longstanding restrictions is still uncertain.

For the time being, everything is focused on the legislative process. If things keep moving forward, Hawaii may formally become one of the jurisdictions that legalizes casino and sports betting in 2025.