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Few states are staunchly against legalized betting as Hawaii. There is nothing legal here. No casinos. No legal sports betting. No lottery. Nothing.
That’s why we were shocked to hear that Hawaii sports betting is advancing forward. Yes, you heard that right, it’s a real possibility after a recent sports betting bill moved forward.
As it stands, Hawaii is one of 11 states without any form of legal sports betting. And out of those 11, it’s probably the one we thought would be least likely to legalize (Utah sports betting is up there in unlikeness). Guess not! Keep reading and we’ll tell you what’s going on in the Aloha state!
House Bill Wants To Legalize Betting
All eyes on House Bill 2570. That’s the bill that’s dividing many Hawaii lawmakers about sports betting. Before we get to that, let’s break down what the proposal marks out in the first place.
The bill would legalize online sports betting with at least six operators allowed inside the island. In-person gambling would NOT be allowed, solely online betting apps. Moreover, there would be a 15 percent tax on adjusted gross revenue. Operators would pay a $500,000 application fee and another $500,000 each year to renew. Licenses would last five years.
As mentioned, the bill has split opinions in the House. So much so that a week ago, the Economic Development and Technology Committee voted HB 2570 out of committee until 3000. We’re not kidding, an entire millennium delay. But… that sounds worse than it was. It was done mostly to table the discussion, not really push it that far away.
Anywho, that discussion continued and this week, we got a major breakthrough. In a vote earlier this week, HB 2570 passed 5-2. Two of the five yes votes were cast with reservations, but it was enough to advance the bill. It’s far from being passed, but it’s a sign of life when we thought there wasn’t in Hawaii.
Before the decisive vote, the committee heard testimony on the proposal. A whopping 41 individuals and organizations spoke to oppose it, while 11 were in support. We’ll discuss those testimonies in the next section.
Opposition Remains Strong Against Sports Betting
Perhaps the best quote of the meeting was spoken by a former House member for 23 years. Marcus Oshiro said this whopper of a quote: “we need to ensure that aloha, not corporate profit, drives our decisions.”
Ah, yes, the aloha spirit is always a guiding principle in the islands. And many see sports betting as the opposite of it, including Oshiro himself. He believes legalizing betting would take more than give. Oshiro called it a wealth extraction bill for the Hawaii people, even if the state were to get some tax revenue out of it.
Similar concerns about the effect on regular, everyday Hawaiians were voiced by others. That included the state attorney general’s office, the Honolulu Police Department, the Department of Health, and even private citizens.
“Sports betting affects lower-income folks more than high-income folks,” said Steve Alm, who is the City of Honolulu prosecutor. He was citing a San Diego State University study showing that 96 percent of bettors lose. “That means we are making money off those who are addicted, and I don’t think we want to be in the addiction-for-profit business.”
Look, sports betting apps stay in business for a reason: they are winning more than losing, so that 96 percent figure is likely on the nose. But at the same time, if tax revenues are used properly, Hawaiians would benefit — even those who don’t partake in it. Most states use betting revenues to fund education initiatives, which certainly trickles down to the common person. But that isn’t enough, say opponents.
“Online sports wagering does not create jobs, provide revenue back into our communities, or have a lasting economic impact in Hawaii,” said Brandon Maka‘awa‘awa, VP of Nation of Hawaii, which represents native Hawaiians. “Almost all activity happens on platforms based outside of Hawaii, meaning revenue leaves the islands while the responsibility for impacts remains in our communities.”
Familiar Support Found For Sports Betting
We could go on and on listing all the opposing viewpoints and quotes, because it was long — and we mean long! But let’s play devil’s advocate now. Who actually supported this bill?
The Sports Betting Alliance, that’s who. If you’ve read any news on legalization efforts, then you’re surely familiar with them. It’s a lobbying group that represents all the top operators like bet365, BetMGM, DraftKings, Fanatics and FanDuel. The group is essentially the mouthpiece for the legalized industry.
Kathleen Owen, speaking on behalf of the Sports Betting Alliance, made a pretty simple counter-argument: gambling is already happening in Hawaii — it’s just happening with offshore sportsbooks. Her argument is that regulating it allows the state to keep the money in state.
That comment became sort of a self-own, however. Some of that illegal betting inside the state is coming from prediction markets. Ironically, most of the top operators have launched prediction products in the past few months to rival Kalshi and Polymarket — and there lies the issue, says the Stop Predatory Gambling group.
“They are violating state laws right now, so what kind of partner will they be? It’s a testament to the values of these companies, and antithesis of the aloha values of your state,” said Bernal, who represents the group.
See? We told you the aloha spirit runs deep in Hawaii. While the bill got some early wins, it won’t be easy to keep it up, given all this opposition we laid out here. We shall see!
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