Hawaii Surprises as Prime Contender for Next Online Sports Betting State

HB 1308 Gains Ground

Introduced by Rep. Daniel Holt, the bill sailed through the House with a 35-15 vote and cleared three Senate committees, Economic Development and Tourism, Commerce and Consumer Protection, and Ways and Means, where it nabbed an 11-2 nod, though four senators tagged their yeses with reservations.

Now, it’s teed up for a full Senate vote, and if it sticks, Hawaii could flip its no-gambling streak by 2026.

The bill’s got legs. It locks in a 10% tax on adjusted gross revenue, among the lowest in the U.S., and a $250,000 license fee good for five years, both reinstated after earlier cuts.

Oversight shifted from the Department of Commerce to the Department of Law Enforcement after pushback, and it slaps fines up to $10,000 for first-time illegal betting offenses, jumping to $100,000 for repeat felonies.

Taxes will fuel education and gambling addiction programs, with a July 1, 2025, start date and a January 2026 market launch in sight.

Why Hawaii?

This is a shocker. Hawaii’s one of two states, Utah’s the other, with zero legal gambling, so HB 1308’s momentum’s turning heads. The Senate Ways and Means tweak restored supplier fees at $10,000 too, showing a solid plan taking shape.

If the Senate greenlights it and the House signs off on changes by May 2, it lands on Governor Josh Green’s desk. He’s neutral so far, but with $571 million in U.S. sports betting handle last month alone, Hawaii’s eyeing a $20 million tax haul yearly,  a game-changer for a state with no betting baseline.

Opposition’s loud, though. The Attorney General’s office, religious groups, and anti-gambling voices warn of addiction spikes: Honolulu Prosecutor Steve Alm fears a “generation of young gambling addicts” in years.

Senator Lorraine Inouye flags family disruptions, and Boyd Gaming frets tourists might skip Vegas for Hawaii’s apps. Senator Sharon Moriwaki’s pushing a rival bill, SB891, for a gambling task force, arguing for more study first. Fantasy sports rule tweaks also spook regulators, hinting at “unregulated gambling” risks.

Crunch Time

The clock’s ticking, the session ends May 2, giving backers weeks to seal the deal. The Senate vote’s next, then the House must nod to tweaks.

If it clears, Hawaii joins 39 betting states, a wild leap for a place where even lotteries are taboo. That 10% tax—7% to education, 7% to addiction help, keeps it lean, undercutting New York’s 51% rate. Four licenses minimum mean a tight market, but big names like FanDuel might still bite.

Nobody saw this coming. Hawaii’s dodged gambling since statehood, but HB 1308’s smooth ride: 35-15 in the House, three committee wins, shows real juice. Opponents’ noise could stall it, especially if Green balks, but the bill’s penalties and funding carve a path to handle fallout. A 2024 University of Hawaii poll pegged 60% resident support, adding wind to its sails.

Success hinges on this month: Senate yea, House sync, Green’s pen. Fail, and it’s back to square one. Either way, Hawaii’s surprise run has experts rethinking the betting map.