Hawaii Kills Casino Bill, But Online Gambling Legislation Still in Play

Senate Bill 893 (SB 893), which aimed to establish a state-regulated casino industry, was officially shelved due to strong opposition from both government agencies and the public. However, Senate Bill 1569 (SB 1569) and Senate Bill 1507 (SB 1507), which focus on online gaming and sports betting, remain under consideration.

Casino Legislation Faces Strong Opposition

SB 893 sought to create the Hawaii Gaming Control Commission, which would oversee casinos in a designated entertainment district near Aloha Stadium. The proposal included a 15% tax on gambling revenue and funding for programs addressing problem gambling. Despite these provisions, opposition was overwhelming.

State Senator Lynn DeCoite confirmed the bill’s failure, citing widespread resistance to the idea of casinos in Hawaii. Several government agencies, including the Department of Commerce and Consumer Affairs, the Attorney General’s Office, and the Honolulu Prosecutor’s Office, raised concerns about the legal, social, and economic impacts of legalizing land-based casinos.

Critics argued that casinos would increase crime rates and harm local families. The Senate Committee on Economic Development and Tourism ultimately rejected the proposal, prompting applause from opponents in attendance.

Developer Stanford Carr, involved in the Aloha Stadium redevelopment project, warned that without casino-generated revenue, his firm might withdraw from the project entirely.

Online Gambling Bills Move Forward

While land-based casinos won’t be coming to Hawaii anytime soon, online gaming legislation is still alive.

Senate Bill 1569 (SB 1569) sponsored by Senator Lynn DeCoite and backed by six other lawmakers, would legalize online sports betting in Hawaii. It includes a 10% tax on gross gaming revenue and explicitly states that sports betting would not be classified as gambling.

The bill passed the Senate Committee on Economic Development and Technology with a unanimous 5-0 vote and now awaits review in the Committee on Commerce and Consumer Protection.

Senate Bill 1507 (SB 1507), introduced by Senate President Ronald Kouchi, aims to legalize online casino gaming, allowing operators to offer slots, table games, poker, and instant lottery games.

It has been referred to the Senate Committee on Economic Development and Technology but has not yet been scheduled for a hearing.

Despite legislative progress, SB 1569 faces pushback from Honolulu’s police department, Attorney General Anne Lopez, Deputy Attorney General David Williams, and many local residents who worry about the social risks of expanding gambling access.

Hawaii remains one of only two states, alongside Utah, with a total ban on all forms of gambling.