Hawaii Bill Regarding Sports Betting Fails to Gain Sufficient Backing
Let's Talk About That Pesky Sports Betting Bill in Hawaii
The 2025 legislative session in Hawaii came to a close, leaving several pressing issues unresolved, including the controversial sports betting bill. The debate was far from over, with gun control and assault-style weapons being the hot topic. However, it managed to make it onto the table at least, unlike the sports betting bill.
The bill, known as House Bill 1308, aimed to legalize online sports betting for Hawaii residents, but it also held the promising potential to fill the state's coffers. The proposed initial licensing fee was a hefty $250,000, but the House felt it was excessive. That wasn't the only bone of contention between the legislative bodies.
Detractors fiercely opposed any regulation of the industry, citing concerns about addiction and financial ruin. Honolulu Mayor Rick Blandiardi, City Prosecutor Steve Alm, Honolulu Police Chief Arthur Logan, and the organization Stop Predatory Gambling all voiced their opposition.
Despite the setbacks, Representative Daniel Holt, sponsor of the bill, remained optimistic about sports betting's future in Hawaii. He acknowledged that substantial progress had been made, but disagreements on key issues prevented final passage. Another Representative, Greggor Ilagan, echoed Holt, stating that it's tough to reach a compromise, and the House and Senate currently hold differing viewpoints.
A Long Record of Disappointment in Hawaii
The push for online gaming regulation in Hawaii is hardly new. Going back to 2012, the state toyed with the idea, initially proposing online poker to fund public schools, the University of Hawaii system, and a scholarship/loan repayment program for doctors. In 2013, the Senate aimed to legalize not only online poker but also sports betting, but the efforts ultimately fell short.
The Sports Betting Alliance has analyzed the Hawaii market and estimated that Hawaiians wager about $300 million through bookmakers and non-regulated sites. A regulated market would tap into this action, generating revenue not only from local residents but also from tourists numbering around ten million annually.
Hawaii heavily relies on the tourism industry, a sector that's faced several challenges in recent years. The pandemic hit the islands hard in 2020-21, followed by devastating wildfires on the island of Maui in 2023. The city of Lahaina was severely impacted, prompting new legislation aimed at mitigating the effects of climate change on wild grasses and other flora.
In response to the industry's struggles, a bill passed during the 2025 session added taxes to hotel rooms, timeshares, and vacation rentals, along with a tax on cruise ships per night in port. The new taxes are expected to generate $100 million annually, but any further shortfalls in the tourism industry could see online gaming legislation as a potential revenue source.
Hawaii's Missed Opportunity
The failure to pass the online sports betting bill in 2025 was due to disagreements over key issues such as tax rates, licensing fees, regulatory authority, and operational control. Despite initial momentum and gubernatorial support, these disagreements prevented the bill from passing before the deadline. As the deadline loomed, the House rejected amendments proposed by the Senate, effectively stalling the legislation until at least 2026.
- In the 2025 legislative session, the sports betting bill, House Bill 1308, failed to pass, leaving room for a potential million-dollar win for the state's coffers in future sessions.
- The bill proposed licensing for online sports betting in Hawaii, with an initial fee of $250,000, a subject of contention in the legislative bodies.
- The setback in 2025 doesn't signal the end of sports betting in Hawaii; Representative Daniel Holt remains optimistic about its future.
- Hawaii's 1308 sports betting bill, despite initial support, was met with opposition from groups like Stop Predatory Gambling and local officials, citing concerns about addiction and financial ruin.
- With the unresolved issue of sports betting, Hawaii missed a potential opportunity to tap into the estimated $300 million wagered by residents annually on non-regulated sites and generate revenue from the ten million tourists who visit each year.
- As Hawaii's tourism industry continues to face challenges, the regulatory approval of sports betting could become a viable option to mitigate any further revenue shortfalls and contribute towards the state's annual income.
