In an unprecedented move, the Hawaii House of Representatives has passed an online sports betting bill. In a 35 to 15 vote, the House passed House Bill 1308, the furthest a gambling proposal has gone since the last decade.

In a landmark decision, the Hawaii House of Representatives has taken the record step of allowing a bill aimed at legalizing online sports betting to pass, marking the furthest progress any gambling-related proposal has made in the state Legislature in at least a decade. The measure, House Bill 1308, passed with a 35 to 15 vote on Tuesday and now heads to the Senate for further consideration.

Proponents of the bill argue that it would generate millions of dollars in much-needed tax revenue for the state. However, opponents fear that legalizing online sports betting could exacerbate financial and social issues for individuals struggling with gambling addiction.

The state of sports betting in Hawaii

Currently, sports betting is legal in Hawaii, but there are no legal avenues for placing bets through sportsbooks or online platforms. As a result, residents seeking to wager on sports often turn to offshore or illegal betting sites. Hawaii remains one of only a handful of states without a regulated sports betting market, while 38 states have already legalized some type of online sports betting, typically accessible via smartphone apps.

If enacted, HB 1308 would allow up to four licensed operators to offer online sports betting services in Hawaii. The bill also stipulates that a portion of tax revenues generated from legal sports betting would be allocated toward programs addressing gambling addiction.

Debate over the bill's impact

The ease of access to sports betting apps has raised concerns among lawmakers who fear that legalizing online wagering could lead to an increase in gambling addiction. Representative Andrew Garrett, who hails from Mānoa, shared a personal account of a friend whose gambling addiction led to financial devastation. "I wouldn't wish that pain on anyone," Garrett said, urging caution as the bill moves forward.

Despite these concerns, proponents of the bill maintain that gambling addiction already occurs in Hawaii, even without a legalized system in place. Representative Dan Holt, representing Honolulu, emphasized that thousands of Hawaii residents are already engaging in online sports betting through unregulated and illegal platforms.

"Hawaii's current laws have not stopped thousands of residents from participating in online sports betting through offshore and illegal platforms," Holt stated. "The reality is that sports wagering is already happening."

Revenue expectations and regulatory challenges

While legalizing online sports betting could generate new tax revenue, experts caution that similar measures in other states have not necessarily resulted in the financial windfall that some expect. Industry representatives previously told lawmakers that Hawaii could see between $10 million to $20 million in annual tax revenue.

Representative David Alcos questioned whether legalizing sports betting was the best way to address the state's financial needs. "Do we need that money to fix our roads?" Alcos asked. "Maybe taking care of families is a better choice."

Aside from tax revenue concerns, regulatory challenges could pose significant obstacles to implementation. The state Department of Commerce and Consumer Affairs would be responsible for overseeing the industry. However, a previous draft of the bill allocated only $200,000 from fees for licensing to the department - a figure that DCCA Director Nadine Ando warned would be insufficient to establish and operate a new gambling enforcement division. "It's monumental, what would need to be done in order to set this up to regulate this industry," told Ando to the House Finance Committee in a February hearing.

Unlike many other states that have legalized sports betting, Hawaii lacks a pre-existing gaming commission. In other jurisdictions, regulatory bodies overseeing gambling often employ hundreds of full-time staff members to ensure compliance with industry standards.

Senate and future considerations

While the House's approval of HB 1308 marks a significant step toward legalized sports betting, the measure's fate remains uncertain in the Senate. Although the Senate recently shelved a proposal to allow for Oahu casinos, lawmakers on Tuesday approved the formation of a tourism and gaming working group. This group, housed in the Department of Business, Economic Development, and Tourism, will study how legalized gambling could impact job creation, investment, and tax revenue in Hawaii.

The working group is expected to include representatives from major gaming companies such as MGM Resorts International, Boyd Gaming Corp., and DraftKings Inc. A report detailing its findings will be submitted prior to the legislative session of 2026, potentially influencing future gambling-related legislation in the state.