Hawaii is making waves with a new bill that would end the state's long-standing stance against gambling.
The Hawaii House Committee on Economic Development & Technology moved forward with a bill that could legalize online sports betting. Known as HB 2570, this bill is a significant step in a state that, alongside Utah, has prohibited all forms of gambling.
It seeks to regulate online sports betting under the Department of Business, Economic Development, and Tourism. Unlike casinos or physical sportsbooks, this proposal focuses solely on digital platforms.
This is the first big step toward legalizing gambling in the Aloha State since last year's sports betting bill was paused.
Understanding the Hawaii Sports Betting Bill
Hawaii does not currently offer any legal online gaming activity. However, sweepstakes casinos are popular and legal in Hawaii. They allow you to play games using virtual currencies instead of real cash.
If passed, the Hawaii sports betting bill would require companies to pay high fees for licenses—about $500,000 initially and for renewal. Licenses would be valid for five years.
Additionally, it suggests taxing 15% on earnings made by these betting operators. The money raised from these endeavors would not just fill state coffers but also fund programs that prevent and treat gambling addiction.
Not Everyone is On Board with Sports Betting in Hawaii
The committee heard many opinions about this controversial topic.
Some people believe that legalizing online sports betting could bring significant economic benefits. They argue it could create new jobs and generate much-needed tax revenue for Hawaii. Others, however, raised concerns about the potential negative impacts, like an increase in problem gambling and its related social issues.
Steve Alm, the Honolulu prosecutor, spoke against the bill. He highlighted past scandals in major sports leagues and expressed worries about exploiting people with gambling addictions. With studies showing that most bettors lose money, Alm questioned the ethics of profiting from those struggling with addiction.
Hawaii Has Historical Resistance to Gambling
While gambling has deep historical and cultural ties in Hawaii, modern prohibition stems from a mix of moral, social, and protective priorities that have consistently outweighed revenue arguments. This has kept the islands free of legal commercial gaming, even as Hawaiians participate elsewhere (e.g., frequent trips to Las Vegas).
This tradition was evident during the public testimony process, where most feedback opposed the bill. Even some supporters of the bill supported it with hesitation, reflecting the state's deep-seated caution.
Representative Daniel Holt, who has backed sports betting in the past, noted he was not consulted on this bill version. Still, he voted to push it forward, indicating ongoing internal discussions and possibly unresolved tensions among lawmakers.
Other gambling proposals have stalled over the years, due to this blend of cultural and political resistance.
The Future Path for Hawaii Sports Betting
For HB 2570 to become law, it must pass through more House committees, win approval from the full House and the Senate, and finally, be signed by the governor.
Timing is crucial; Hawaii's legislative session has strict deadlines, with key dates in March and May.
While some see this bill as a chance to boost the local economy, strong opposition and historical context suggest it won't be an easy journey.
Whether this marks a new chapter for Hawaii's economy or ends up as another failed attempt remains to be seen. If passed, it would signal a significant cultural shift for a state known for its strict gambling laws. Nonetheless, proponents face an uphill battle in convincing Hawaii's residents and lawmakers to embrace this change.
