Hawaii Considers Legalized Gambling with New Proposals
Hawaii, one of the few states without legal gambling, is once again considering bills aimed at introducing regulated betting and gaming.
Sports Betting Takes Center Stage
Two bills, HB 1308 and SB 1569, focus on legalizing sports betting and fantasy sports under the oversight of the Department of Business, Economic Development, and Tourism (DBEDT).
The plan would require at least four online sports betting platforms to operate in Hawaii, each taxed at 10% of adjusted gross revenue (AGR).
Meanwhile, SB 1572, introduced by Senator Kim Decoite, proposes a more streamlined approach. This bill zeroes in on both retail and online sports betting but excludes fantasy sports. It sets the tax rate slightly higher at 15% on AGR and doesn’t cap the number of operators.
A Bigger Gamble
The most ambitious proposal, SB 1507, aims to establish the Hawaii Lottery and Gaming Corporation (HLGC). This state-run entity would manage a variety of games, including online lotteries, poker, and casino-style games. Unlike traditional casinos, this platform would focus on digital gaming, targeting both locals and tourists.
A standout feature is the inclusion of Hawaiian-themed free-to-play games and lotteries marketed specifically to people outside the state. This approach blends tourism promotion with gaming, setting Hawaii apart from traditional gambling markets.
Breaking Down the HLGC
Under the plan, the HLGC would be overseen by a seven-member board with expertise in gaming, finance, and technology. A dedicated CEO would manage daily operations, while an external gaming provider would handle the platform’s technology, marketing, and customer support.
Revenue from the HLGC would flow into a Special Lottery and Gaming Fund, supporting public education, infrastructure projects, water conservation, and gambling addiction programs. By framing gambling as a community benefit, lawmakers hope to counter years of skepticism.
All the bills emphasize strong safeguards for responsible gambling. These include tools for players to self-exclude, set deposit limits, or take breaks from gaming. The HLGC proposal also prioritizes transparency and includes funding for programs to combat problem gambling.
The Uphill Battle
Hawaii’s journey toward legalized gambling has been anything but easy. For years, the state has resisted, citing concerns about social impacts, addiction, and financial harm. Even regulated gambling has faced tough opposition, with critics doubting whether the economic benefits outweigh potential downsides.
However, supporters believe these new proposals strike the right balance. They point to other states that have successfully legalized gambling, highlighting how funds can support vital programs like education and public infrastructure.
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