On Wednesday (2 April), the Senate Ways and Means Committee voted 11-2 to advance House Bill 1308 (HB 1308), which would legalise and regulate online sports betting in the state.

The bill, which had already passed the House in February by a 35-15 margin, now heads to the full Senate for a vote.

This legislative development marks a historic milestone for Hawaii, which remains one of only two US states, alongside Utah, with no legal forms of gambling.

Never before has a sports betting bill reached the floor of either legislative chamber in the state.

HB 1308’s advancement by six committees, all by strong majorities, highlights increasing legislative momentum toward reconsidering Hawaii’s prohibitionist stance on gambling.

Sen. Donovan Dela Cruz, chair of the Senate Ways and Means Committee, made key amendments to the bill before the committee vote, including reinstating provisions from the original House version.

These included a 10% tax rate on gross gaming revenue and a $250,000 licensing fee per operator.

These details had previously been stripped from the bill during earlier committee discussions, in a strategic move to facilitate dialogue and avoid early opposition.

By reintroducing the specifics at this stage, Dela Cruz indicated a desire to finalise the bill’s structure before it reaches the Senate floor.

To streamline the legislative process, the senator also adjusted the bill’s effective date to 1 July 2025.

This strategic modification is aimed at ensuring that if the Senate passes the bill with his amendments, the House can concur without the need for a conference committee.

With the legislative session scheduled to adjourn on 2 May, timing is critical.

Department of Law Enforcement to lead the charge

Under the current proposal, the Hawaii Department of Law Enforcement would assume regulatory responsibilities over the state’s nascent sports betting industry.

The bill mandates a minimum of four online sports betting operators. While the language of the bill allows for potentially more operators, the floor of four is designed to encourage competitive market dynamics.

Gov. Josh Green has expressed cautious openness to the initiative.

He has not explicitly endorsed HB 1308, but stated his support for a “careful exploration of sports wagering,” emphasising the need for robust safeguards to prevent negative social impacts.

These concerns have also been echoed by several legislators who voted in favour of the bill but noted their reservations.

Opposition to the bill has come from a coalition of law enforcement and social service organisations.

Honolulu Prosecutor Steve Alm has emerged as a prominent critic, along with the state attorney general’s office, citing potential risks related to addiction, crime, and youth access.

These voices have consistently warned that the introduction of legal betting in Hawaii could exacerbate existing social challenges.

Native Hawaiians raise concerns

Meanwhile, some Native Hawaiian leaders have advocated for equitable access to economic opportunities should gambling be legalised.

Comparisons have been drawn to Native American tribes on the US mainland, who have successfully operated casinos and online betting enterprises under federal law.

The Council for Native Hawaiian Advancement (CNHA), which will hold its next convention at the Tulalip Casino in Washington state, has indicated interest in bidding for an online sports betting license if HB 1308 becomes law.

One related legislative proposal, which has not yet advanced, is the formation of a state-run Gaming Working Group to study broader implications and opportunities surrounding legalised gambling in Hawaii.

This concept reflects the legislature’s gradual movement toward data-informed policy on gambling, rather than outright prohibition.

Gov. Green has also recently commented on broader gambling initiatives, including proposals for a casino as part of the Aloha Stadium Entertainment District.

While he has not taken a definitive stance, he noted that any expansion of gambling in the state must be accompanied by strict regulatory and social protections.

If the Senate approves the legislation and the House concurs with the amended version, Hawaii could see legal online sports betting begin as early as mid-2025. The next few weeks are crucial if supporters expect to make history.