Hawaii Hits Pause on Online Sports Betting Legislation

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You can say "Aloha" to any chances of an online sports betting bill passing this year.

Hawaii’s push to legalize online sports betting reached an impasse during the latest legislative session. The bill, which stirred significant interest and debate, ultimately failed to cross the finish line before the crucial deadline on Friday.

Hawaii and Utah are the only two states in the country where gambling is illegal.

Sports Betting Bill Included Fantasy Sports

HB 1308, introduced by Rep. Daniel Holt last January, would have brought online sports betting and daily fantasy sports to Hawaii.

The bill required at least four operators to enter the market. However, it faced significant challenges. The Senate and House could not agree on which government body should regulate the industry, an issue made more complex by Hawaii's lack of existing gambling infrastructure.

Initially, the Department of Consumer Protection was assigned to oversee regulation; however, it raised concerns about its feasibility. Subsequently, the Senate proposed transferring regulatory duties to the Department of Law Enforcement after the Department of Commerce and Consumer Affairs also expressed reservations. As a result, the bill was put on hold.

Lawmaker Differences Stall Progress

Ultimately, lawmakers were unable to reach a consensus on key issues. Representative Holt expressed mixed feelings about the outcome.

"We put our best effort forward and got it very far this year," he said in an interview with Hawaii News Now. He noted that disagreements over details, such as tax rates, operational oversight, and licensing, stalled the bill's progress.

A looming question remains whether the projected $10 to $20 million in potential revenue justifies possible issues like crime and addiction.

Although the bill didn't pass, its proponents view the effort as a step forward. Rep. Holt emphasized the need for continued work, expressing hope that lingering questions may find answers in future proposals. “We just got to work harder next year to capture this much-needed tax revenue for our state,” he added.

Opposition Voiced Concerns

However, opposition remains firm. Critics argue that the pitfalls linked to expanding online gambling outweigh its benefits. Les Bernal, national director of Stop Predatory Gambling, pointed out to KHON TV, "This is the fifth state in 2025 that said no to expanding online gambling.” He highlighted the financial and public health issues observed in states that have embraced online gambling.

While this year's attempt to legalize online sports betting in Hawaii fell short, the conversation is far from over. Supporters and opponents alike are preparing for the discussions that lie ahead.

Study Group to Examine Possibilities

A working group comprising law enforcement, government, tourism, and industry experts will now explore the possibilities of legalizing gambling in Hawaii. This move is viewed as a positive sign by many advocates of the legislation.

Despite Hawaii's strict gambling laws, social and sweepstakes casinos are legal.

WOW Vegas Casino came on the scene in 2022 as a social casino. Pulsz Casino and High 5 Casino are also popular choices.

McLuck Casino is one of the newest sweepstakes casino options in Hawaii. Stake.us is also available in The Aloha State.

And keep this in mind, many offer no deposit bonus offers that will let you play for free.

About the Author
Dave Grendzynski is a casino writer for Vegas Insider and Action Network. His most cherished casino experience is hitting a royal flush after betting the maximum amount on a machine at Seneca Niagara. 

Follow Dave Grendzynski @casinonewsdave on Twitter/X.

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