Will Hawaii Finally Cave To Legal Betting?

Many states have stayed far away from legalized sports betting. Some have avoided casinos like the plague.

And then there’s Hawaii, which has skipped both and any other form of betting, including lottery and bingo. This makes the state one of only two in the United States without any type of gambling (the other is Utah).

But Hawaii has shown a glimmer of interest in changing that. Earlier this year, it was kicking around a bill to legalize betting. It didn’t pass, but it was at least discussed.

Now, there’s some early momentum on possibly bringing a state lottery to the islands. That’s right, a slew of lottery professionals were pitching the prospects of a lottery to some key Hawaii stakeholders. Keep reading, and we’ll bring you up to speed with this surprising development.

Lottery Experts Make Their Pitch To Hawaii

The Hawaii Tourism and Gaming Working Group used a late August meeting to hear from the world of lotteries. They heard from three experts in this world:

• Andrew White of the North American Association of State and Provincial Lotteries
• Delaware Lottery Director Helene Keeley
• Responsible gambling consultant Brianne Doura-Schawohl.

All three made their pitch to the group about why a lottery makes sense in the Aloha State. White started with perhaps the biggest question Hawaii would have to answer: what would the lottery money actually be for? He explained that states usually don’t create these things purely to make more money. No, no, there’s normally a specific need attached to it — whether that’s raising funds for education, veterans programs, infrastructure, property-tax relief, or something else.

Delaware gave Hawaii an example of just how big this industry could eventually become. Its lottery started with the traditional stuff back in 1975, but today the Delaware Lottery also oversees video lottery terminals, table games, online casinos, and even mobile sports betting. Even its old-school games like Powerball, Mega Millions, Keno, and scratch-offs generated $60 million for the state’s General Fund after expenses.

Keeley also explained that Delaware uses a single online gaming provider instead of opening the doors to a bunch of competing apps. That gives the state tighter control over things like advertising and responsible gambling efforts — issues that Hawaii lawmakers brought up earlier this year.

And because this is Hawaii and this was a tourist board meeting, tourism inevitably entered the fold too. White suggested the state could create Hawaii-specific lottery products that visitors might want to buy, while Keeley said Delaware sees its own gaming activity jump during the summer when tourists flock to its beaches.

Doura-Schawohl was a little more even-keeled when speaking. She acknowledged that problem gambling is real, especially with young folks who see betting almost in unison with traditional investing. Kudos to her for not glossing over the potential issue.

This was an important meeting in front of an audience that has real influence on the issue. The 24-member panel of TGWG is supposed to deliver recommendations to Hawaii lawmakers by the end of 2026 — whether that’s to pursue this or continue to stay sidelined on it.

Hawaii Already Has A Massive Gambling Market

One talking point was brought up during the meeting that might have an outsized effect on next steps. It’s that Hawaii betting might not be legal, but it doesn’t mean Hawaiians aren’t betting en masse. They are, and illegally so.

At an earlier working group meeting, law enforcement director Mike Lambert estimated that somewhere between $700 million and $800 million moves through illegal gambling in Hawaii every year. This is through offshore sportsbooks, prediction markets, and even organized crime.

That’s a big, big number. And it gives legalization supporters an obvious argument heading into 2027. Hawaii’s ban hasn’t stopped people from gambling — it’s just meant the state doesn’t regulate the action or collect any tax revenue from it. It’s a pitch many states are beginning to buy after the explosive rise of prediction markets over the last two years.

What Will Happen In 2027?

So does this recent committee meeting mean Hawaii will legalize next year? No, of course not.

But it sure is a good sign. Even hearing out lottery executives would’ve felt impossible a few years ago in this state. That’s happening the same year that Hawaii lawmakers openly floated the idea of bringing sports betting to the state. All this is real momentum that’s slowly building going into the next legislative year.

For the first time in the state’s history, lawmakers will enter 2027 with months of meetings, testimony from gaming officials, estimates on the size of the illegal market, and actual recommendations from the working group sitting in front of them. It may not seem like much, but it’s better than starting from nothing — which has long been the norm stateside.

Maybe Hawaii says no again. It certainly wouldn’t be surprising. But after years of barely letting gambling through the front door, the state is finally spending some serious time figuring out what legalization would actually look like. That’s promising, no doubt about it.