Hawaii lawmakers renew efforts to legalize online gambling

Hawaii lawmakers have introduced a new set of bills in the 2025 legislative session aimed at legalizing online casino gaming, sports betting, and fantasy sports, renewing efforts to bring gambling to one of the last U.S. states with a total ban.  

Despite multiple past failures, legislators hope the latest proposals, which include online sports betting, a state lottery, and casino-style gaming, will gain traction. However, given Hawaii’s historical resistance to gambling, the chances of passage remain slim.  

Proposed bills HB 1308 and SB 1569 aim to legalize online sports betting and fantasy sports with regulation overseen by the Department of Business, Economic Development and Tourism (DBEDT). 

At least four online sportsbooks would be licensed, and sports betting would be subject to a 10% tax on adjusted gross receipts (AGR). Additionally, fantasy sports would be legally classified as distinct from traditional gambling, ensuring separate regulatory and taxation frameworks.

An alternative sports betting bill, SB 1572, introduced by Senator Kim Decoite, proposes the creation of the Hawaii State Sports Wagering Commission under the DBEDT.

The bill seeks to legalize both retail and online sports betting, imposing a 15% tax on adjusted gross receipts (AGR) and a $250,000 license fee valid for five years. Operators would also be required to hold licenses in at least three other U.S. states. Notably, the bill excludes fantasy sports from legalization.

The online casino gaming and lottery bill, SB 1507, introduced by Senator Ron Kouchi, proposes establishing the Hawaii Lottery and Gaming Corporation to oversee lottery, poker, and casino-style gaming. The bill allows for multi-state player pools to increase participation and suggests offering Hawaii-themed sweepstakes and free-play games to attract tourists. 

It explicitly excludes sports betting from its scope. The Lottery and Gaming Corporation would operate as a tax-exempt entity, with its revenues directed to a Lottery and Gaming Special Fund to support community initiatives.

The standalone fantasy sports bill, SB 373, proposes the legalization of fantasy sports as a separate initiative. The bill has already undergone its first reading and is currently under committee review.

Hawaii has a long history of rejecting gambling legislation, primarily due to concerns over problem gambling, cultural opposition, and regulatory challenges. 

In 2022, House Bill 1962 proposed a single-location sportsbook on Oahu but failed to advance beyond committee review. In 2023, House Bill 344 sought to legalize online sports betting but faced strong opposition from religious and cultural groups, resulting in its rejection. 

The following year, Senate Bill 929 and House Bill 2259 aimed to expand online gambling to include poker and sports betting; however, anti-gambling advocacy and economic concerns prevented their success.

Similarly, in 2024, HB 2765, supported by the Sports Betting Alliance (SBA), was swiftly dismissed by the legislature.