The Tourism and Gaming Working Group held its inaugural meeting in a Capitol conference room, a session described by officials as a fact-finding mission rather than a vote to change any laws.
This marks a significant moment in the ongoing debate about gambling in Hawaii, a state that, alongside Utah, upholds a near-total ban on commercial gambling. With an estimated $700–800 million underground gambling market, Hawaii legislators are re-evaluating their stance. Could this lead to a new era for gambling in Hawaii?
This is the first major step toward legalizing gambling in the Aloha State since last year's sports betting bill was paused.
Understanding the Role of the Tourism and Gaming Working Group
The recently established Tourism and Gaming Working Group, formed through a legislative resolution in 2024, includes lawmakers, law enforcement officials, and industry experts from major gaming companies like Boyd Gaming and FanDuel.
Their mission is to produce a comprehensive policy and impact framework by late 2026.
This groundwork will shape legislative discussions for the 2027 session, examining various gaming models within the context of gambling in Hawaii and exploring potential venues like the New Aloha Stadium Entertainment District or even cruise ships.
Diverse Perspectives on Gambling in Hawaii
The first meeting of the working group highlighted the differing perspectives on the future of gambling in Hawaii.
Law enforcement officials, such as Department of Law Enforcement director Mike Lambert, emphasized the negative consequences of the illegal gambling market, linking it to drugs and crime. Similarly, Honolulu Prosecutor Steve Alm warned that legalizing gambling could exacerbate addiction and crime without eliminating illegal activities.
Conversely, pro-legalization voices, including Rep. Greggor Ilagan, argue that regulation could help manage the black market, turning gambling in Hawaii into a source of tax revenue totaling hundreds of millions. This revenue could fund significant projects like the New Aloha Stadium, bringing economic growth and job opportunities to the islands.
Hawaii's Long-Standing Gambling Debate
The debate over gambling in Hawaii is not new.
Numerous proposals to introduce gambling have stalled due to a blend of cultural and political resistance. In 2025, efforts to regulate online sports betting and to establish a Hawaii Lottery and Gaming Corporation faced similar obstacles. This led to the creation of the working group, which aims to provide a more comprehensive analysis of gambling’s potential economic benefits versus its social costs in Hawaii.
The potential legalization of gambling in Hawaii presents a compelling economic opportunity. A legal gambling market could transform a portion of the illegal market into a significant tax base, supporting tourism-related projects. However, this potential must be balanced against the risks of problem gambling and its impact on Hawaii’s family-friendly image.
Future Possibilities for Gambling in Hawaii
Although the group’s initial meeting didn’t move to legalize gambling, it laid the groundwork for future discussions.
Should Hawaii choose to proceed, options could include online sports betting or establishing a state lottery. However, proposals for a widespread casino network or horse racing remain off the table, focusing instead on tightly controlled venues.
As Hawaii stands at a critical juncture, the findings from the Tourism and Gaming Working Group will play a pivotal role in shaping the state’s policy on gambling in Hawaii. Whether this leads to new revenue streams or a reinforcement of existing bans, Hawaii’s journey with gambling policy is just beginning. Balancing economic aspirations with cultural values and community spirit will be essential as the state considers its options.
