Hawaiian Lawmakers Fail To Reach An Agreement On Sports Betting: Legalized Gambling Delayed

In a last-minute fumble, efforts to legalize online sports betting in Hawaii have failed for 2025 after lawmakers failed to pass a bill that would have legalized it.

The lawmakers disagreed on legalizing sports betting, missing the May 2, 2025, deadline for House Bill 1038 to be voted on before the legislature adjourns.

Hawaii has some of the most stringent gambling laws in the US and will remain one of the only two states without any form of legal gambling for now. With the legislative session now closed, residents will have to wait at least another year for another chance to push for legalization. 

A Close Call for Legal Sports Betting

This year, Hawaii has been progressing towards legal sports betting under a vision that sought to see the existing black market sports betting market regulated. 

The vision came closer to realization after the proposed House Bill 1308 passed both the House and Senate. This was a rare achievement for a state where gambling has long been a cultural and political taboo. 

Rep. Daniel Holt championed House Bill 1308, which sought to create a regulated framework for online sports betting and included provisions for fantasy sports. Holt wished to see at least four mobile operators licensed to launch by January 2026 through this bill. 

"We put forward our best effort and got it far this year. However, it seems as if we have not agreed on critical details: the tax amount, who would operate, who would oversee the operation of the sports betting and give out the license and the licensing fees," Holt said. 

In support of this endeavor, Governor Josh Green signaled openness to signing the bill into law, provided it promised safe gambling. 

"As long as there are some safeguards with gambling addiction services and so on, if the Legislature goes the full way and passes it, I'll likely let it become law," Green said.

The Last Minute Flop

Unfortunately, the fiery bill recently hit a wall in the final stretch. A conference committee reconciling the House and Senate versions failed to bridge the gap between the two bodies. 

The lawmakers have differing versions of the bill and couldn’t agree on key details like tax rates and licensing fees. On their end, lawmakers from the Senate pushed for lower costs. Their bill version proposed a 10% tax on gross gaming revenue and a $250,000 licensing fee for operators, aiming to strike a balance between revenue and oversight. In opposition, the House stripped those provisions, preferring to negotiate terms with sportsbooks after passage. This disagreement over taxes and fees became a dealbreaker.

The two also differed on whether Native Hawaiian organizations should get preferential treatment in license bidding. The Senate pushed for special considerations outlined by the Council for Native Hawaiian Advancement, but the House resisted.

These disagreements and a tight deadline before the legislature adjourned on May 2 killed the bill’s chances. “We got it very far this year, but we just haven’t agreed on the details,” Holt said, both disappointed and resolute.

Opposition Packs a Punch

Hawaii lawmakers are open to Holt’s overall vision under House Bill 1308, but not everyone cheered for legal sports betting. Key figures have been opposing the bill, further narrowing its chances of success.

Honolulu Mayor Rick Blangiardi, City Prosecutor Steve Alm, and Chief of Police Arthur Logan have been at the forefront of this opposition. In a bold advocacy move, they recently issued a public health warning about the dangers of online gambling. 

According to Alm, online sports betting is a ‘high-tech pipeline to addiction and financial ruin through debt.’ The Prosecutor raised concerns about financial instability, linking gambling to family breakdowns. Progressive Democrats and a few Republicans share this concern and are against gambling, saying its economic benefits are not worth the social harm it causes. 

However, despite opposition and setbacks, the supporters still show firm resolve, and more are rallying behind the cause. Lawmakers have stated that they will take sports betting up again in 2026. Hinting at a renewed push, Holt recently said, “We’ll give it another try next year and see how it goes.” 

A State at a Crossroads

Hawaii’s failed sports betting bid shows the state is still cautious about gambling, owing to concerns about addiction and cultural preservation. While 38 other states rake billions from legal sports betting, the Aloha State remains an outlier. For now, illegal game rooms and offshore betting sites will continue to operate in the shadows, untaxed and unregulated.

The road ahead is uncertain, but the debate is far from over. As lawmakers regroup and the working group digs deeper into the issue, Hawaii faces a tough choice on whether to stick to its gamble-free roots or join the national trend toward regulated betting. The wait got a little longer for residents eager to legally bet on the Super Bowl or March Madness.