Key takeaways from this article:
Hawaii's House of Representatives passed House Bill 1308 by a 35-15 vote, advancing sports betting legislation for the first time in the state's history.
This development is significant because Hawaii is one of only two states (along with Utah) that currently have no form of legal commercial gambling.
The bill now moves to the Senate where it faces substantial challenges before the legislative session concludes on May 2.
Hawaii took a significant step toward legalizing sports betting last week as House Bill 1308 passed the House by a 35-15 vote. This marks the furthest a gambling bill has ever advanced in one of the nation's last gambling-free states.
The legislation, sponsored by Rep. Daniel Holt, would authorize up to four online sportsbooks and legalize fantasy sports in the Aloha State, with operations potentially beginning July 1, 2025. If passed, Hawaii would join 38 other states with regulated sports betting markets.
Comments from Holt were dead on the nose regarding the state of sports betting, not only in Hawaii, but across the remaining 12 U.S. states with no legal sports betting.
"This is great news for Hawaii," Holt said in a statement. "Sports betting is already happening across our islands — it's just happening through bookies and unsafe offshore websites that don't have any consumer protections and allow minors to bet."
Proponents argue that regulation would generate up to $20 million in annual tax revenue while creating jobs and consumer protections. The Sports Betting Alliance noted that more than 1,300 Hawaiian constituents have contacted legislators supporting the initiative.
The bill's journey hasn't been without controversy. The House Finance Committee removed specific licensing fees (originally $250,000 for a five-year license) and tax rates (initially proposed at 10%) to keep discussions open. Some lawmakers suggested the licensing fees should be substantially higher for an "industry that makes billions."
Opponents raised concerns about gambling addiction, money leaving the local economy, and potential social problems. Rep. David Alcos questioned whether Hawaii wanted to become like Las Vegas, citing fears about "sex trafficking to stealing, to all kinds of bad things that happen when you open doors to legalizing gambling."
Despite clearing the House before the March 6 crossover deadline, the bill faces substantial hurdles in the Senate, which has already deferred a companion bill (SB 1569) and shelved several other gambling-related proposals. The legislative session concludes on May 2.
Hawaii and Utah remain the only two states without any form of legal commercial gambling. The momentum comes as sports betting continues to expand nationally, with North Carolina becoming the most recent state to legalize the activity in 2024. Industry analysts are now watching Missouri, which is expected to launch its sports betting market in fall 2025.
Meanwhile, the Hawaii Senate has approved a working group to study how gambling could benefit the state's economy, with findings due before the 2026 legislative session – suggesting that even if this bill stalls, the conversation about legalized gambling in Hawaii is far from over.