Hawaii Nears Finish Line as 40th State with Legal Sports Betting

Aloha to Online Wagering

Already passed by the House earlier, the measure’s now one step from Governor Josh Green’s desk. If he signs, Hawaii will join 39 states, D.C., and Puerto Rico with some form of legal sports betting, rolling out online wagers as its first taste of regulated gambling. The finish line’s in sight, and it’s moving fast.

The bill’s path has been steady. After clearing the House, it hit the Senate, where tweaks were made, enough to need House approval again.

Lawmakers expect the House to sign off soon, paving the way for Green’s pen. Once signed, it’ll unleash online sports betting across the islands, with at least four operator licenses up for grabs.

A 10% tax on adjusted gross revenue and $250,000 fees, both for licenses and renewals, will fuel the setup, overseen by the Hawaii Department of Law Enforcement. Daily fantasy sports get the green light too, all slated to kick off before January 1, 2026.

Key Changes and Cash Flow

The Senate shifted gears. Originally, the Department of Commerce and Consumer Affairs was tapped to regulate, but its director balked. So, the Senate handed the reins to the Department of Law Enforcement, with the Hawaii Department of Taxation tagged to collect the 10% cut.

Tax and fee talks got messy, rates were briefly left blank in the Ways and Means Committee but landed back at the House’s 10% and $250,000 plan. That switch in regulators is the big tweak; now, the House just needs to check the box.

Money’s part of the push. Hawaii’s watched neighbors like Nevada rake in betting bucks: $8.2 billion wagered there last year alone. A 10% tax here could net $10-15 million yearly, per early estimates, though exact bets are TBD until operators launch.

Four licenses mean competition. With no brick-and-mortar sportsbooks planned, it’s all mobile, a rare setup shared by states like Tennessee. Fantasy sports toss in extra cash, broadening the play.

Pushback and Promise

Not everyone’s cheering. The Attorney General’s Office, Department of Commerce, religious groups, and anti-gambling voices have dug in against it. Boyd Gaming, a Nevada casino giant, joined the chorus, likely wary of online rivals.

Critics fret over addiction and cultural shifts, Hawaii’s dodged legal gambling since statehood in 1959. But momentum’s strong; the Senate’s 18-7 vote Tuesday shows bipartisan juice, and Green’s signaled he’s open to signing.

If it sticks, Hawaii will hit 40th on the legal betting list, a milestone since PASPA fell in 2018. Most states mix online and in-person; Hawaii’s online-only vibe stands out. The Department of Law Enforcement’s got a year to set rules: licenses, tech checks, launch date, and operators will sync up for a unified Day One before 2026. Bettors statewide, from Oahu to Maui, will tap in via apps, no casino trek needed.