Hawaii Sports Betting Legalization – No Longer the Longest of Longshots
A poll of U.S. gaming executives asking them which state is the most likely to never legalize sports betting undoubtedly would have Utah ranked No. 1. The vehement opposition of The Church of Jesus Christ of Latter-day Saints, which is dominant in the state's overall culture, makes the chances extremely remote.
Of the other 10 states that, as of April 2026, still have not authorized the gambling, Hawaii, Alabama, or South Carolina might well be selected as the second choice of those executives.
First attempts to legalize sportsbooks in Hawaii
But in early 2025 - seven years after the U.S. Supreme Court ended Nevada's virtual monopoly on sports betting and empowered any state to make it legal - the first sign of progress in the Hawaii legislature emerged.
That’s when a bill to authorize the licensing of four sportsbooks and to tax them at a 10% tax rate was advanced by the Hawaii House Committee on Economic Development and Technology, and then the full House of Representatives approved the measure by a 35-15 vote.
The state Senate followed with support for its own sports betting bill. But ultimately, the members of the two chambers could not agree on specifics such as the tax rate, the amount of the initial licensing fee, or the number of sportsbooks before the session ended for the year.
One potentially positive sign for sports betting legalization supporters at that point was an agreement to form a "Tourism and Gaming Working Group." Members of a couple of major brand sportsbooks were among the members.
Revived legalization efforts in 2026
Legalization efforts were revived in February 2026, when the same House committee advanced a similar bill by a 4-3 vote. The new version increased the tax rate to a still-modest 15% in an attempt to win over lawmakers who had reservations about the previous figure. The licensing fee also was increased to $500,000.
But efforts stalled after that, postponing the possibility of sports betting legalization ahead to 2027.
In mid-April 2026, the working group met for a fourth time and heard from various supporters and opponents. American Gaming Association executive Tres York explained that AGA research reveals that nearly two million jobs in the U.S. have been created by the gaming industry, with states taking in more than $50 billion in tax revenue.
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A casino is in the discussion in the Aloha State
One of the challenges in adding sports betting is the fact that Hawaii has neither a state lottery nor any casinos. That means there are no experienced state gambling regulators who could add another responsibility to their menu – as often occurs in other states.
The preliminary plan initially has been for the Hawaii Department of Business, Economic Development and Tourism to take on the task of prospective regulations.
But another stalled bill in 2026 would have authorized the first casino in Hawaii, to be overseen by a newly-formed Hawaii Gaming Control Commission. The licensing fee would be $1 million. The casino would be located on the island of Oahu and be a key component of the "New Aloha Stadium Entertainment District."
Another bill that could be revived in 2027 would legalize casino games on cruise ships within Hawaiian territory.
The other states that do not have any casinos are Utah, Vermont, South Carolina, and Alaska.
When will Hawaii legalize gambling?
The challenge for gambling expansion advocates for Hawaii is that until one form of gambling is approved, it will be difficult for other forms to move forward.
For instance, horse racing is illegal in Hawaii. The Aloha State also stands alone with Utah in not having a state lottery - a key reason for general skepticism about all gambling legalization efforts. That said, separate lottery authorization bills were introduced in the state House and Senate in early 2026.
Opponents in early 2026 referenced the various ills recognized in legal sports betting states, including a rise in compulsive gambling and match fixing. That may mean that sports betting winds up taking a back seat to lottery and/or casino legalization.
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