Hawaii’s House panel advances online sports betting bill
Hawaii’s House Committee on Economic Development & Technology has moved forward a bill to legalise online sports betting, despite divided opinion and public concern. According to several local media reports, House Bill 2570 passed the committee in a 5-2 vote, with two of the affirmative votes made with reservations. The measure now progresses through the legislative process, marking a step towards introducing a regulated online gambling market in a state that currently has no legal betting.
HB 2570, introduced by Representative Daniel Holt, proposes the launch of at least six online sports betting platforms, while prohibiting in-person wagering. The bill sets a 15 percent tax on adjusted gross revenue, and both application and annual renewal fees are set at $500,000. Licences would remain valid for five years, and oversight would be managed by the Department of Business, Economic Development and Tourism.
On Friday, Holt, who represents Sand Island, Iwilei and Chinatown in the State House, announced his resignation from the legislature following his appointment to the Department of Land and Natural Resources by Gov. Josh Green.
Opposition highlights societal concerns
The bill has faced opposition from a wide range of government agencies and community groups. Several media reports said that those raising objections include the state attorney general’s office, Hawaii’s police department, the Department of Health, and members of the anti-gambling lobby.
The bill’s critics cited concerns about the impact on public welfare and the potential for gambling addiction. They emphasised the risks of normalising gambling in the state. The opposition argued that sports betting can disproportionately affect lower-income individuals. They cited studies showing that a majority of participants lose money. Concerns were also raised about the role of online prediction markets, which could allow sportsbooks to bypass regulations, potentially undermining the state’s ability to enforce gambling laws.
Supporters argue for regulation and revenue
Meanwhile, proponents of HB 2570 argue that illegal gambling is already occurring in Hawaii. Supporters believe that legalisation would allow the state to collect taxes and implement consumer protections. The bill’s supporters say that regulated platforms would be required to adopt responsible gambling tools. In turn, they say, this will prevent underage access, ensuring oversight of operations that are currently unmonitored. Supporters suggest that tax revenue from the new market could be directed towards problem gambling prevention and public services.
Related legislative efforts and cruise ship casinos
In parallel, other gambling-related legislation is under consideration in Hawaii. House Bill 1945 would allow casino gambling on cruise ships passing through Hawaiian waters. The bill outlines a 20 percent tax on gambling revenue and restricts gaming to large cruise ships on voyages of at least 100 hours, with operations to pause when docked. The bill proposed that oversight would fall to the Department of Commerce and Consumer Affairs, though concerns have been raised about the department’s capacity to monitor such activities.
Lawmakers are also examining the role of prediction markets, which allow participants to bet on the outcomes of sports events and other contests. HB 2198, a separate measure, seeks to ban these markets entirely, reflecting the legislature’s attempt to balance economic opportunity with consumer protection.
Next steps for Hawaii’s sports betting debate
According to HB 2570 status text, after passing the second reading, it has now been referred to the committees on Judiciary & Hawaiian Affairs (JHA) and Consumer Protection & Commerce (CPC). Further deliberations and potential amendments are expected as the committees review the measure.
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