Hawaii’s Latest Bid for Legal Sports Betting Falls Short, Study Proposed Instead

Aloha State supporters of legal sports betting may have to settle for a study of online wagering this year.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne ? Senior News Analyst
Mar 19, 2024 ? 16:10 ET ? 2 min read
Hawaii
Photo By - SIPA

Aloha State supporters of legal sports betting may have to settle for a study of online wagering this year rather than the actual authorization of that wagering in Hawaii.

Several sports betting-related bills were introduced and shuffled around the Hawaii legislature this year, but not much progress was made, and the legislation is now dead after missing an important deadline. 

For example, House Bill 2765 was passed by the chamber’s economic development committee and received its second reading in early February.

Then came March 7, the last day for a bill to "crossover" to the legislature's other chamber. H.B. 2765 did not crossover and died as a result.

That means Hawaii, one of only two states with no legal gambling, will not legalize sports betting this year, just like every year before. Nevertheless, H.B. 2765’s sponsor, Democratic Rep. Daniel Holt, is trying to get some momentum going in the legislature.

Holt is doing so by sponsoring a resolution that requests the state’s Department of Business, Economic Development, and Tourism gather a “Sports Wagering Working Group” that would conduct a sweeping study of the possible legalization and regulation of online sports betting in Hawaii.

The working group would look at revenue estimates, potential regulatory structures, consumer protections, and the experience of other states as part of its analysis. The report outlining the group's findings and potential recommendations would be due no later than 20 days before the start of the 2025 legislative session next January. 

Holt’s resolution also notes that there is plenty of illegal sports wagering going on in the U.S. and that “by channeling this activity into a legal market and building a robust, responsible, and regulated market for sports wagering, Hawaii stands to gain millions of dollars each year in additional tax revenue.”

Be it resolved?

Holt has put forward a House-only version of the resolution, which requires a single vote in the chamber, and a "concurrent" one, which would also require a vote in the Senate. The two resolutions are scheduled for hearings on Friday before the House's economic development committee, which Holt chairs. 

Matching resolutions have been introduced in the Senate as well by Democratic Sen. Glenn Wakai. At least two other sports betting-related resolutions requesting studies have been introduced in the House as well.

“Although resolutions don’t become law, they do express the sentiment of the Legislature and may prove vital in moving your issue forward,” Hawaii’s Legislative Reference Bureau says on its website. “Resolutions may range from establishing an honorary designation for a day or perhaps a month, to requesting the formation of a task force or calling for a study of a particular issue. When a bill dies, a legislator may convert some aspect of the bill to a resolution.”

The concurrent resolutions must pass their single floor vote by April 4 to crossover to the other chamber. The Hawaii legislature is scheduled to adjourn on May 3.

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff¡¯s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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