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Gambling in Hawaii: Could Casinos Change the State’s Tourism Economy?

Gambling in Hawaii: Could Casinos Change the State’s Tourism Economy? article feature image
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Gambling in Hawaii remains a proposal, not a legal industry. The state has no legal commercial casinos, state lottery, or regulated sports betting. But recent talks with Las Vegas business leaders are raising a broader question: Could gambling help Hawaii earn more from tourism without simply drawing more visitors?

Legislative efforts have failed in the past, but at a business exchange summit in Waikiki, Las Vegas experts discussed how gaming might fit into Hawaii’s economy. According to KHON2-TV, the event brought together leaders to share ideas about sports, tourism, entertainment, and gambling—what participants called the “fun economy.”

The discussion was not an announcement that casinos in Hawaii are coming. Instead, it offered a look at the economic goals and community protections that could shape any future proposal.

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Are There Legal Casinos in Hawaii?

There are currently no legal commercial casinos in Hawaii. Hawaii and Utah remain the only two U.S. states without legal casinos, a state lottery, or regulated sports betting. A summit, study, or working group does not change those laws.

Hawaii’s Tourism and Gaming Working Group is studying different gambling options and their potential effects. Its discussions have included sports betting, a lottery, and a physical casino. The group is expected to present its findings to lawmakers before the next legislative session.

For residents and visitors, the distinction matters: Studying legalization is not the same as approving it.

casinos in hawaii could become a thing if a las is passed next year.
The discussion about casinos in Hawaii also raises questions about the islands’ identity as a visitor destination. Image Credit: Shutterstock

Why Las Vegas Experts Are Talking About Hawaii

The Waikiki summit focused on more than casino floors. Las Vegas Chamber of Commerce leaders shared ideas about how entertainment, sports, tourism, and gaming can work together within a larger economy.

One of the central points came from Alan Feldman of the UNLV International Gaming Institute. He explained that a potential integrated resort in Hawaii would aim to change the visitor mix, rather than depend mainly on local residents.

“It’s about changing around the tourist base,” Feldman told KHON2. “Changing the mix of tourists that you’re getting. And even with fewer tourists, having greater revenue.”

That view shifts the debate. Instead of asking only how many people a casino might attract, it asks how much economic value each visitor could bring.

However, this is a proposed strategy—not proof that a casino would produce those results in Hawaii.

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How Casinos in Hawaii Could Fit Into Tourism

The experts’ message was that a casino should not be treated as a separate attraction with little connection to the rest of the state. Any proposal should explain how it would fit into Hawaii’s wider economy.

That creates several important questions for policymakers:

  • Would visitors spend more overall, or move spending away from existing businesses?
  • How would local restaurants, shops, and entertainment providers benefit?
  • What public costs would come with regulation and gambling-related harm?
  • How would a gaming resort fit Hawaii’s identity as a visitor destination?

These questions provide a way to judge future proposals. A promise of higher casino revenue alone would not answer whether the broader community would benefit.

At the summit, Chamber of Commerce Hawaii President and CEO Sherry Menor described the discussion as a wider economic development issue. She expressed interest in how such an approach could help make Hawaii’s economy more resilient.

gambling in hawaii won't be happening anytime soon after a couple of bills stalled once again.
A proposed casino resort might connect with Hawaii’s existing tourism industry. Image Credit: Shutterstock

Could Gambling Revenue Support Community Needs?

Supporters see potential for gambling revenue to help fund public services and support the local economy.

State Sen. Lynn DeCoite, chair of the Tourism and Gaming Working Group, discussed keeping revenue in Hawaii to help residents, social services, and struggling businesses. Her comments reflected an interest in connecting any future industry to community needs.

Still, those goals should not be confused with an approved spending plan. The summit coverage did not establish a final tax structure, a guaranteed revenue amount, or a binding system for distributing funds.

A future proposal would need to explain not only how much money gambling might generate, but also who would receive it and how the state would measure the results.

Why Gambling Safeguards Should Come First

The discussion also addressed gambling addiction. Experts told KHON2 that Hawaii could begin preparing support systems before deciding whether to legalize gambling.

Their recommendations included:

  • Funding treatment for problem gambling.
  • Building counseling services into the public-health system.
  • Supporting public education to help people recognize gambling problems.

These steps would make community protection part of the planning process rather than something added after casinos open.

DeCoite also identified addiction as a major concern. The working group’s task is therefore broader than estimating revenue: It must consider the harm gambling could cause and how Hawaii would respond.

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Casino table games illustrate one part of the wider gambling debate in Hawaii. Image Credit: Shutterstock

What Happens Next for Gambling in Hawaii?

The next major step is the working group’s report to the Legislature. Its findings are intended to help lawmakers weigh possible economic benefits against social costs and regulatory needs. The report itself would not legalize gambling.

Until lawmakers enact a change, casinos in Hawaii remain a subject of debate rather than an approved development.

The Las Vegas summit added a useful idea to that debate: Judge gambling by how it might affect the whole state, not just by what happens inside a casino. For Hawaii, that means examining visitor spending, local business opportunities, public services, and community health together—before making a decision.

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