Hawaii’s Gambling Future: Casino Bill Fails, But iGaming and Sports Betting Remain in the Race

Hawaii is at a crossroads when it comes to gambling. While efforts to introduce casinos have recently stalled, the fight for online casino gaming (iGaming) and sports betting continues to gain momentum. Currently, Hawaii has no legal forms of gambling, placing it in the company of only Utah in the United States.

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Casino Legislation Stalls in Honolulu

The latest setback came with the folding of Senate Bill 893 by the Hawaii Senate Committee on Commerce and Consumer Protection. This bill, proposed by state Sen. Dru Kanuha, aimed to permit two commercial casinos – one in the New Aloha Stadium Entertainment District and another at the Hawaii Convention Center. However, the committee decided to “indefinitely defer” the bill following significant opposition from the state Department of Commerce and Consumer Affairs and Attorney General Anne Lopez.

Committee Chair Lynn DeCoite emphasized that the opposition to bringing a Las Vegas-style casino to Hawaii was overwhelming. “Casino gambling has not always been a favorite subject. Regardless of if we’re flying to Las Vegas or any other place, we’ve always had our challenges here in Hawaii,” she stated. The bill proposed a 15% flat tax on casino revenue, with the funds earmarked for K-12 public education.

iGaming and Sports Betting: A Glimmer of Hope

Despite the casino bill’s demise, the future of gambling in Hawaii isn’t entirely bleak. Legislation for online casino gaming (iGaming) and sports betting are still very much alive. Senate Bill 1569, spearheaded by Lynn DeCoite with cosponsors from both parties, seeks to authorize online sportsbooks with a 10% tax on gross proceeds. A key provision specifies that sports betting would not be classified as games of chance or gambling.

SB 1569 recently passed the Senate Economic Development and Technology Committee with a unanimous 5-0 vote, and is now awaiting consideration in DeCoite’s Commerce and Consumer Protection Committee. Several entities, including DraftKings, BetMGM, the Sports Betting Alliance, and Boyd Gaming, have voiced their support for this bill.

Meanwhile, Senate Bill 1507 proposes authorizing online casino gambling, encompassing slot machines, table games, poker, and instant lottery games. Introduced by Sen. Ronald Kouchi, it has been referred to the Senate Economic Development and Technology Committee but hasn’t yet undergone review.

The Current Landscape of Gambling in Hawaii

Currently, Hawaii prohibits all forms of gambling, including charitable gaming, parimutuel wagering, lottery, and tribal gaming. This makes Hawaii one of only two states in the U.S. with such a strict stance on gambling (the other being Utah). Many Hawaiians attribute this to political opposition influenced by ties with Nevada’s gambling industry.

Hawaii serves as a significant market for Las Vegas, often referred to as Hawaii’s “Ninth Island.” The city of Las Vegas is home to a large population of native Hawaiians, and many casinos feature Hawaiian-inspired elements like cocktails and food. This strong connection fuels the desire for legal gambling options within Hawaii.

Key Facts About Gambling in Hawaii

• Hawaii is one of only two states in the US with no legal forms of gambling (the other being Utah).
• The proposed casino bill (SB 893) would have imposed a 15% tax on casino revenue to fund K-12 education.
• Sports betting legislation (SB 1569) proposes a 10% tax on gross proceeds from online sportsbooks.
• iGaming legislation (SB 1507) would authorize various forms of online casino games.
• Las Vegas is a major market for Hawaiian residents, with many casinos incorporating Hawaiian themes.

Conclusion

The future of gambling in Hawaii remains uncertain. While the push for casinos has hit a roadblock, the momentum behind iGaming and sports betting legislation suggests that the state may eventually embrace legal gambling options. The ongoing debate highlights the complex interplay between economic benefits, social concerns, and historical connections to gambling hubs like Las Vegas. The potential for increased tax revenue to fund education and the desire to cater to a significant existing market are key factors driving the continued efforts to legalize these forms of wagering.

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