Hawaii lawmakers propose igaming and sports betting bills

Legalized igaming has been proposed in Hawaii, alongside the planned inception of the Hawaii Lottery and Gaming Corporation (HLGC). 

As outlined in Senate Bill 1507, introduced by senate president Ronald Kauchi on behalf of another party, the HLGC would be created to “conduct and regulate wagering and gaming” in the state for the purpose of “community betterment.” 

The bill, which amends the Hawaii Revised Statutes, adds further context, noting that by legalizing igaming, it aims to generate tax revenues that can be put towards the funding of technology-related public education programs. 

Headquartered in Hawaii’s first judicial circuit, the HLGC would be governed by seven board of directors, with three members appointed by Governor Josh Green, two appointed by the president of the senate and two selected by the speaker of the house of representatives. 

The board of directors would take on the responsibility of selecting an exclusive gaming and lottery operator and establish a regulatory framework.

It would also be able to approve, amend, or reject any budget proposals put forward by the HLGC CEO, who will be appointed in due course. 

Within 180 days of all board members being appointed, the selection process to find a suitable operator would commence, while it will also establish all rules and policies to govern the igaming operation in the same time frame. 

As per the bill’s plans, the revenue structure would see the HLGC compensate the chosen operator with a portion of proceeds generated, alongside reimbursement of costs related to the running of the operation. 

The HLGC would be exempt from any taxation under state law as it oversees “an essential government function”, though it will deposit all net proceeds derived from the previous quarter into the lottery and gaming special fund. 

SB 1507 notes that once formed, the HLGC’s website will display a number of responsible gambling measures, including self-exclusion tools, loss limits, and a problem gambling helpline. 

If passed into legislation, the act would come into effect on July 1, 2025. 

Alongside SB 1507, three separate sports betting bills were also filed in the state legislature on Wednesday, January 22. 

HB 1308, introduced by Daniel Holt, Darius Kila, and Chris Todd, proposes that the Department of Business, Economic Development, and Tourism is selected as the regulator of the sports wagering market.

The bill did not specify the rate of tax operators would be subjected to, but did note than an undisclosed percentage of revenues would be allocated to a problem gambling prevention and treatment special fund. 

Elsewhere, SB 1569 outlined a similar proposal, though had greater backing having been introduced by seven different representatives. The bill would allow a minimum of four different sports betting operators to work in the regulated market, with each license fee costing $250,000 and last for five years from the date of issue. 

A third sports betting bill in the form of SB 1572, introduced by Lynn DeCoite, would look to create the Hawaii Sports Wagering Commission as a division of the Department of Business, Economic Development, and Tourism. 

This bill would permit the commission to issue licenses to potential operators as well as penalties for violations. Much like SB 1569, each operator license would cost $250,000 alongside a renewal fee of $100,000. 

This latest development comes just shy of a year after Hawaii’s House of Representatives Committee on Economic Development passed House Bill 2765 to legalize and regulate online sports betting. 

However, it failed to make it beyond a second reading in February 2024, with nine representatives voting in favor of the bill but with reservations, while 10 voted against.