Hawaii lawmakers halt casino gambling bill indefinitely

February 14, 2025

Hawaii lawmakers halt casino gambling bill indefinitely

Hawaii has long remained one of the few states in the US that staunchly opposes any form of legal gambling. With Hawaii State Legislature’s recent decision of indefinitely deferring Senate Bill 893, it has maintained its anti-gambling stance.

Had the bill passed, it could have opened the door for casino gambling within the state. The bill called for establishment of Hawaii Gaming Control Commission to regulate casino operations.

What does Senate Bill 893 propose?

The bill also proposed a 15 percent tax on gross receipts generated from gambling proceeds aimed at generating revenue. The revenue generated from casino operations would be used for public services and economic development.

Another key proposal of the bill states that casinos be situated within Aloha Stadium Entertainment District, aiming to make it a focal point for entertainment and tourism.

Several key organisations, including the Department of Commerce and Consumer Affairs and the Department of the Attorney General, voiced their concerns about the bill, which has led to its eventual deferment. Sen. Lynn DeCoite, who played a key role in the announcement, noted the opposition. She stated that Hawaii is not ideal for additional imposition of taxes on residents and that it would not align with the state’s economic and social priorities.

Other significant fears expressed were increase in organised crime, illegal activities, financial instability for vulnerable residents, and negative impacts on Hawaii’s economy.

Prior attempts to legalise online gambling

In January, two companion bills that garnered attention were HB 1308 and SB 1569. These bills aimed to legalise both sports betting and fantasy sports under the regulation of the Department of Business, Economic Development, and Tourism.

Another bill was introduced by Senator Kim Decoite, SB 1572. The bill proposes the establishment of the Hawaii State Sports Wagering Commission within the Department of Business, Economic Development, and Tourism. The commission would oversee sports betting in the state.

While the bill shares many features with the companion bills, it has some key differences. It shares common provisions like only considering sportsbooks that are currently licenced in at least three US jurisdictions; allowing prop bets, among others.

SB 1507 aims to establish the Hawaii Lottery and Gaming Corporation, which would be responsible for offering various forms of online gambling, including poker, lottery, and casino games.

While it does not include sports betting, it proposes a broad expansion of online gaming options for residents and tourists. Multi-state player would be allowed, and it would let the corporation offer “legally compliant free-play games and sweepstakes with Hawaii-related prizes” to tourists.

The Hawaii Lottery and Gaming Corporation would be tax-exempt in all activities. This bill, to take effect on 1 July, also proposes the establishment of a Lottery and Gaming Special Fund to ensure that the revenue generated by online gaming is reinvested into the community.

Another bill is under consideration, SB 373. It is a standalone measure to legalise fantasy sports in Hawaii, making it a separate category from illegal gambling. This bill could pave the way for broader gambling reforms in the state.

Despite the aforementioned attempts at legalisation, Hawaii has a history of rejecting similar efforts. One such bill to legalise online sports betting was quickly shut down in 2024. Previous attempts have met with similar outcomes.