More than half of U.S. states provide regulated online sports gambling, and Hawaii could be next. Last week, the Aloha State made significant progress toward making mobile wagering a reality, as the bill overcame a giant hurdle in the state legislature.

It’s still far from a done deal, but Hawaii could become the 39th U.S. jurisdiction to offer legal online sports betting to its residents. As expected, some experts are concerned about the potential downsides of gambling expansion, while other Hawaiian lawmakers view it as an opportunity.

There are still many details to be ironed out by the House and the Senate. However, no gambling legislation has gained this much momentum in the local legislature.

Heading for a Senate Vote

On April 2, 2025, the Senate Ways and Means Committee passed House Bill 1308 with an 11-2 vote. This legislation would legalise and regulate online sports betting in the state. In February of this year, the House advanced the bill with a 35-15 vote. Now, it will proceed to the full Senate for review and voting.

However, before the committee vote, Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, made some alterations to the bill. For instance, he included a 10% tax rate on gross gaming revenue and a US$250,000 licensee fee for approved third-party operators.

These lines were not included in previous committee discussions to encourage dialogue and prevent early opposition from lawmakers and other experts. Nonetheless, with the addition of these details, Dela Cruz aims to streamline the process, as he also modified the legislation’s effective date to July 1, 2025.

In the meantime, Tyler Gomes, the Chief Administrator for the Council for Native Hawaiian Advancement, shared his thoughts on legalising sports betting in the state:

“If the law allows anyone to open a gaming facility or gaming operations then, absolutely, a qualified Native Hawaiian organisation could take part in that.”

Details on the Proposed Market

If enacted, House Bill 1308 would allow operators to offer and accept legal online bets on sports events. Four third-party online sportsbooks would be permitted to operate lawfully in the state under this regulation. The bill would also allow for more to join the scene, but having a starting four would make the market more competitive.

Predictably, the state would collect a licensing fee from operators while also taxing their profits at approximately 10%. Early estimates indicate that each year, Hawaii could generate between US$10 and US$20 million in additional tax revenue from mobile sports betting. The state would allocate a portion of the revenue to fund gambling education and treatment and to address offshore gambling.

Concerns and Opposition

The bill includes several protections, but that doesn’t mean it won't face opposition. Honolulu Prosecutor Steve Alm appears to be the primary opponent, along with the state attorney general’s office and several social service organisations.

When speaking to the Senate Consumer Protection and Economic Development committees in March, Alm said:

“When you watch pro football now, half the commercials are for gambling. I’m afraid that in a couple of years, we are going to have a whole generation of problem gamblers, typically young men. So I think this would just be opening up a Pandora’s box.”

Still, despite Alm’s concerns, most officials believe that the expansion of gambling is inevitable, and it would be preferable for the state to regulate it.

For instance, State Sen. Glenn Wakai noted that gambling is already prevalent and that the bill would help those who have become addicted.

Additionally, on Wednesday, Hawaii witnessed the influential Senate Ways and Means Committee approve the bill, which provides greater protections to the legislation. One such protection includes administration by the state Department of Law Enforcement and a prohibition on betting for youth sports events.

One of the members who voted against the betting legislation was Sen. Lorraine Inouye. She shared that she received calls from women who were alarmed that their husbands had experienced gambling-related issues, which also caused family troubles. Inouye commented, “I just believe that we are sending the wrong message” with the bill.

The other member who opposed the legislation was Sen. Sharon Moriwaki, who is concerned about the revenue projections and believes more should be studied on the matter.

Native Hawaiian Involvement and Economic Opportunity
Meanwhile, some Native Hawaiian leaders reckon that, like in other U.S. states, Native Hawaiians should be a priority when it comes to revenue sharing. For instance, Gomes said the following:

“I think it’s important for Native Hawaiians to be involved. There is a lot of revenue to go around, and we know there are a lot of Native Hawaiian entities and organisations that would really benefit from that revenue.”

At the same time, the CNHA will host its next convention at the tribe-owned Tulalip Casino in Washington state and could be eligible for a mobile sports betting license if Hawaii passes the betting legislation.

Lastly, Gomes remarked that the legislation presents an opportunity for economic development, which is central to CNHA’s objective. “You can expert CNHA asserting itself at least form the position of how this might benefit Native Hawaiians,” said Gomes.

Looking Ahead

Hawaii has certainly made progress on its potential sports betting expansion. However, the deal is far from finalised, as discussions between the House and the Senate can always become tricky. Additionally, the Legislature’s current session ends in less than a month, which could pose another obstacle.