Hawaii Sports Betting Bill Advances After Crucial Senate Vote

Hawaii on Wednesday as a pivotal Senate committee advanced legislation to legalize mobile sports betting, moving the state one step closer to regulated wagering.

The Senate Ways and Means Committee approved the measure, though several expressed “reservations” about ing it, reflecting the ongoing political complexities surrounding the bill’s future. Nevertheless, the committee’s endorsement marks a major milestone for Hawaii, where gambling remains strictly prohibited.

Currently, Hawaii and Utah are the only two U.S. states without any form of legalized casinos, racetracks, or a state-operated lottery. The bill had earlier ed the House, navigating through multiple committees and ultimately earning a nearly two-to-one favorable vote on the chamber floor.

Senate Committee Vote Signals Growing

The Senate has historically shown less enthusiasm for legalizing sports betting compared to the House. However, the Senate Ways and Means Committee’s approval on Wednesday, following the Senate Commerce and Consumer Protection Committee’s favorable vote last month, indicates shifting dynamics. The progression through two influential committees suggests the bill might have enough to the full Senate.

Key ers of the initiative include some of the nation’s largest sportsbook operators and several union organizations within Hawaii. Proponents argue that legalized sports wagering could provide a new revenue stream, with projections estimating around $20 million annually in tax revenue. Though this amount represents a small slice of Hawaii’s overall budget, advocates highlight the potential benefits for education and public programs.

Despite the backing, the legislation has faced considerable resistance. Opponents include major state bodies such as the Attorney General’s office and the Department of Commerce. Numerous religious and anti-gambling organizations also voiced their disapproval, warning that the negative social impacts of legal betting could outweigh any financial gains.

Boyd Gaming, a prominent Nevada-based casino operator running about a dozen Las Vegas properties, also stood against the bill. Hawaii residents are known to make hundreds of thousands of visits to Las Vegas each year, contributing significantly to the gaming economy there.

House and Senate Versions Must Align

Although the House ed an earlier version of the bill, the Senate introduced amendments requiring the House to either accept the changes or negotiate a compromise. For the legislation to become law, both chambers must identical versions.

If Hawaii enacts the bill, it would 39 states, Washington, D.C., and Puerto Rico in legalizing some form of sports betting. Hawaii would also become one of the few jurisdictions offering mobile-only sports betting without any physical sportsbook locations.

Key Provisions of Hawaii’s Sports Betting Bill

Under the bill’s current language, individuals physically present in Hawaii would be able to wager through at least four licensed mobile sportsbooks.

Among the strongest backers of the measure are major sportsbook brands including BetMGM, DraftKings, FanDuel, and Fanatics. These companies are likely contenders for licenses if the law is implemented. Hawaii’s combination of a relatively small population and high median income presents an attractive market, potentially drawing interest from additional operators like Caesars, BetRivers, and ESPN BET, all of which are actively expanding across the U.S.

The bill sets a licensing fee at $250,000 and proposes a 10% tax rate on gross gaming revenue. These rates would place Hawaii among the states with the lowest entry costs for legal sportsbook operations.

Another key provision of the bill requires all licensed sportsbooks to commence operations simultaneously by a universal start date, which must occur before January 1, 2026.

If the bill ultimately becomes law, it will mark a significant shift for a state that has long resisted legalized gambling.

Source:

‘’Hawaii sports betting bill takes key step to legalization’’, cdcgaming.com, April 02, 2025.