Legislation in Hawaii is considering conducting a study to potentially legalize online sports gambling in the future

Hawaii is one of 12 states that doesn’t offer domestic sports betting. Politicians have an overall aversion to gambling. However, those stances could change with the growing effort to legalize online sports gambling in the state. Unlike other states, massive revenue from sports betting doesn’t motivate Hawaii. They do not have to worry about budget shortfalls or ongoing environmental crises that siphon tax dollars. The state Senate has recently passed two bills, HI HCR70 and HI HR55. Together, the Hawaii Department Of Business, Economic Development, And Tourism will conduct local sports betting analysis. A group would be formed to analyze the impact of sports betting in Hawaii. Specifically, its effects on the economy, tourism, and if it would affect illegal operators already in the state.

What type of information would be gathered by the group analyzing sports betting in Hawaii?

Over the last decade, illegal gambling houses have become an issue in Hawaii. That’s one reason sports betting is being pushed to be legalized. In a proposed study to analyze sports gambling in Hawaii, the group will look for best practices in problem gambling identification and help. That’s a real issue that sportsbooks in the US continue to deal with. Gamblers get in too deep and start losing ridiculous amounts of money. 

Additionally, they will monitor anticipated financial data regarding the handle, hold, and tax collections generated by domestic sports betting in Hawaii. This will be done by conducting a proper model to research states that already have gambling legalized. They want to come up with a plan that best fits their state and how they could benefit the most from sports gambling being legalized. Finally, they will monitor the experiences, negative and positive, of regions that have recently legalized sports gambling.

Hawaii doesn’t have to compete with other states in sports gambling markets

If sports gambling became legalized in Hawaii, they would have zero temptation from bordering domestic sportsbooks or online sports gambling. Currently, the only legal sportsbook is over 2,000 miles away from Hawaii. Therefore, they do not have the geographical concern that other states have to fully legalize sports gambling. 

Luckily, there is plenty of time for Hawaii to collect data that can be finalized in time to be debated during the 2026 legislative session. That ensures Hawaii will have at least two more years without domestic sports gambling. Off-shore sportsbooks will continue to be used in Hawaii until they fully legalize online sports gambling. These illegal operators allow all 50 states to use their platforms to bet on sports.