Hawaii lawmakers try yet again for online gambling in 2025

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Lawmakers in Hawaii have introduced a cluster of long-shot bills that would open up the state to online casino gaming and/or sports betting.

All forms of gambling remain illegal in the Aloha State, despite multiple efforts in past years to change that landscape. Now, several pieces of legislation have been introduced from 2025 that cover everything from online sports betting to online casino gaming, lottery and fantasy sports.

Firstly, a pair of companion bills, HB 1308 and SB 1569, would legalize both sports betting and fantasy sports under the regulatory oversight of the state Department of Business, Economic Development and Tourism.

Effective July 1, 2025, the legislation would allow a minimum of four online sports betting platforms to do business in the state. Sports betting would be taxed at 10% of adjusted gross receipts. Fantasy sports would be their own vertical but would no longer constitute illegal gambling.

Similar sports betting proposal has some differences

A separate Senate bill introduced by Sen. Kim Decoite, SB 1572, proposes establishing the Hawaii State Sports Wagering Commission within the Department of Business, Economic Development, and Tourism.

The bill’s language is largely similar to the aforementioned bills, sharing in common provisions such as only considering sportsbooks that are currently licensed in at least three U.S. jurisdictions; allowing prop bets, college wagering and exchange wagering under the umbrella of sports wagering; and charging a $250,000 fee for an initial five-year license.

However, there are some key differences. Decoite’s bill specifically mentions that it would legalize both retail and online sports betting, proposes a higher tax rate of 15% of AGR, does not stipulate a minimum number of licensees and does not include fantasy sports.

Decoite is also one of the co-sponsors of SB 1569.

iGaming also on the agenda

Finally, Sen. Ron Kouchi’s SB 1507 would establish the Hawaii Lottery and Gaming Corporation and allow it to contract an online gaming provider to offer games of chance and games of skill, including lottery, poker and casino games.

Interestingly, as well as legally allowing multi-state player, it would let the corporation offer “legally compliant free-play games and sweepstakes with Hawaii-related prizes” to users outside of Hawaii, for the purpose of tourism.

Sports wagering would not be included in this particular proposal.

The Hawaii Lottery and Gaming Corporation would be tax-exempt in all activities as it would be deemed an essential government function. A Lottery and Gaming Special Fund would be established to ensure revenue is returned to the community.

Kouchi’s bill would also take effect on July 1.

The Hawaii legislature is already considering another bill, SB 373, which would legalize fantasy sports as a standalone measure. That proposal had its first reading and has been sent to committee for discussion.

Chances of progression seem slim to none

Hawaii lawmakers filing legislation to allow gambling is nothing new early in a calendar year.

In 2024, a push to authorize online sports betting garnered support from the sportsbook-led Sports Betting Alliance (SBA), but HB 2765 was quickly stamped out in the legislature. That bill was led by Rep. Daniel Holt, a co-sponsor this year of HB 1308.

Kouchi launched his own sports wagering effort in 2024, SB 3376, which would have set up a Hawaii Gaming Control Commission and legalized both online poker and sports betting. It was also quickly quashed.