Hawaii Reevaluates Its Position on Legal Gambling
Introduction to Hawaii’s Unique Gambling Stance
Hawaii stands out as one of the few states in the U.S. that has completely prohibited all forms of legal gambling, along with Utah. However, with a recently formed Tourism and Gaming Working Group, the state is currently evaluating whether introducing legalized gaming could be beneficial.
The ongoing legislative session continues to explore possible opportunities for the establishment of gaming activities within the state.
New Legislative Proposals for Casinos and Cruise Ship Gaming
Currently, Hawaii does not allow any form of gambling. Nevertheless, two fresh bills have been introduced with the intent to change this situation. The first bill, HB 2222, aims to establish a regulatory framework for casinos to meet the rising demand for gaming entertainment.
If passed, HB 2222 would set up a Gaming Control Commission responsible for overseeing licensing, market regulation, and tax administration. Licensing fees would include an upfront application cost of $1 million and an annual fee of $5,000, with licenses valid for 20 years. The taxation model proposed includes a 15% revenue tax for table games and a 20% tax on other gambling activities. Part of these revenues would support a newly created State Gaming Fund. The bill also includes provisions to promote safer gambling practices.
In addition, there is HB 1945, a separate proposal focusing on permitting gaming operations on cruise ships docked in Hawaii. This legislation would leverage the state’s tourism industry without major regulatory overhaul, placing oversight under the Department of Commerce and Consumer Affairs instead of creating a new regulatory body.
Carryover Bills Address Sports Betting, Lottery, and Stadium Gaming
Besides new proposals, there are several bills from previous legislative sessions still under consideration. These address the legalization of sports betting, state lottery games, and casino gaming linked to entertainment venues.
HB 1308 targets the regulation of sports betting in Hawaii, reflecting increasing interest in wagering products nationwide. Although it has previously seen progress, disagreement on details has stalled its advancement.
Meanwhile, HB 1434 and SB 1507 propose the establishment of a lottery regulatory body and launching legal lottery games within the state.
Additionally, SB 893 suggests extending casino gaming to the New Aloha Stadium Entertainment District and the Hawaii Convention Center, aiming to boost entertainment options in those locations.
Effort to Prohibit Prediction Markets in Hawaii
Amidst initiatives to legalize various gambling forms, HB 2198 is a newly introduced bill designed to outlaw prediction markets within the state. This move aims to block operators from offering these types of betting platforms legally in Hawaii.
The bill explicitly categorizes prediction markets as illegal gambling activities. While some in the prediction market industry claim their services are licensed by federal regulators and thus can operate nationwide, this has raised significant opposition from traditional gambling interests.
