Hawaii sports betting takes small step forward despite opposition

Sports fans in Hawaii hoping to have a chance to enjoy legal sports betting have a glimmer of hope after a state House committee recently moved forward an attempt to advance HB 2570, an online sports betting bill. The decision came after fierce opposition was voiced by residents and officials, and the deciding "yes" vote was declared with reservations. 

An amendment was also added to delay the effective date to July 1, 3000, indicating that much more debate is expected. However, if the bill passes, sports betting would launch within 180 days of the bill's signing into law. Given the intensity of discussions at the recent Hawaii House Economic Development and Technology Committee hearing, passing HB 2570 will take significant work. 

The Hawaii House Economic Development and Technology Committee moved HB 2570 out of committee on a 4-3 vote, and 41 of the 52 comments submitted or expressed in person to the committee opposed the bill. 

Hawaii Prosecuting Attorney Steve Alm pointed out to the committee the recent integrity controversies related to sports betting and the effect that wagering has on lower-income bettors. The state's Department of the Attorney General also opposes the bill, citing health and safety concerns, including gambling addiction. 

Kathleen Owen, testifying in favor of the bill on behalf of the Sports Betting Alliance, countered with the argument that sports wagering is already happening on a massive scale. "Residents of Hawaii wagered more than $680 million in illegal markets in 2025, an increase of over 140% since 2022," she said.

HB 2570 is the latest push to legalize sports betting in Hawaii after efforts stalled at the end of the 2025 legislative session. No sports betting bill had ever passed even one legislative chamber until 2025, when a bill cleared the House and Senate but collapsed in conference committee. Lawmakers failed to reach a compromise, so the current group is trying to move it forward in 2026.

Hawaii and Utah are the only U.S. states that prohibit nearly all forms of gambling. The Aloha State has a long history of opposition to commercial gambling, with cultural traditions and social impacts outweighing any tax revenue arguments. However, in addition to the online sports betting bill, the state is discussing a cruise ship gambling bill this year.

There are 40 states, in addition to Washington D.C., that have some form of legalized U.S. sports betting. Of those, 32 offer sports betting with apps or websites. A sports betting legalization bill has been introduced in nearly every U.S. state legislature at some point within the last 10 years. 

The current Hawaii proposal would allow for a minimum of six online sports betting licenses and would tax sports betting at a rate of 15% of adjusted gross revenues. The 2025 legislation proposed a 10% tax rate, which was one reason several lawmakers would not support the bill.

Applicants would be required to pay $500,000 for the initial license and renew it every three years at the same rate. Online sports betting would be regulated by Hawaii's Department of Business, Economic Development and Tourism.

The legislation would allow wagering on college sports, with the exception of events involving Hawaii colleges. That prohibition would not apply to teams involved in tournament play, such as the NCAA Tournament.

For HB 2570 to become law, it would need to advance through additional House committees, pass both legislative chambers and be approved by the governor. March and May legislative deadlines leave little time for negotiations. With strong opposition from state agencies, law enforcement and native Hawaiians, there are many obstacles ahead.