Legal Sports Betting Gaining Traction in Hawaii

Late last week saw a flurry of legislative developments across the United States, highlighting the ongoing tension between momentum for legal sports betting and roadblocks for online gaming. While states like Hawaii are moving forward with sports betting legislation, several others, including Indiana, Virginia, and Wyoming, have decided against pursuing internet-based casino gambling, leaving proponents of iGaming disappointed.
Hawaii Moves Forward with Legal Sports Betting

One of the most notable developments occurred in Hawaii, where on February 14, the House Judiciary and Hawaiian Affairs Committee advanced HB 1308, a bill that would allow for up to four digital sports betting platforms in the state. The committee voted 6-4 in favor of moving the bill forward to the finance committee, signaling that Hawaii is edging closer to joining the growing list of states where online sports betting is legal.

A companion bill, SB 1569, has already passed through one senate committee, further illustrating the growing legislative support for sports betting in Hawaii. However, this progress comes amid concerns raised by government agencies, including the District Attorney’s office, about the potential for addiction. Lawmakers have also expressed doubts about the bill’s ability to significantly impact the state’s budget, as the projected $37 million in tax revenue falls short of addressing

 

Hawaii's larger economic challenges.

Despite these hurdles, Hawaii’s move toward legal sports betting contrasts sharply with the failure of another high-profile gambling initiative in the state. A bill that would have allowed land-based casinos on Oahu, SB 893, was killed in committee on February 13, after it became clear that without the inclusion of casinos, developers would abandon the Aloha Stadium Entertainment District project altogether. This reflects the ongoing friction between different factions within the state, where the lure of sports betting is strong but the desire for physical casinos remains contentious.

While the push for legal sports betting continues to gain momentum across the country, the same cannot be said for online gaming. Last week, Indiana’s House Speaker Todd Huston confirmed that a bill allowing for online casinos would not proceed, despite passing through the Public Policy Committee in January. HB 1432, which would have permitted casinos three digital skins each, was ultimately stalled due to a lack of consensus within the legislature. Huston explained that the bill’s complexity, including concerns about its impact on local communities and Indiana’s gaming environment, made it difficult to move forward.

Indiana is not alone in this setback. Lawmakers in both Virginia and Wyoming also recently opted not to move forward with proposals to legalize online casinos, marking at least the third state to reject iGaming legislation in 2024. These developments highlight the ongoing struggle that online gaming faces in gaining widespread legislative approval, with concerns over the potential social impacts of such expansion often outweighing the allure of increased tax revenue.
Ongoing Efforts in Other States

Despite the challenges faced by iGaming proponents, several states continue to push forward with their respective gambling initiatives. In New Hampshire, an amended version of SB 168, which would allow for statewide mobile casino gaming, was advanced by the Senate Ways and Means Committee on February 12. The bill proposes a 45% tax rate on online gambling, with 35% of the revenue allocated to charitable gaming, in line with the state’s existing model for land-based casinos.

While New Hampshire’s bill has made headway, it reflects the wider trend of balancing state revenues with social concerns surrounding gambling expansion. Similarly, in Oklahoma, lawmakers continue to debate multiple sports betting bills, with some proposals seeking to legalize both retail and digital sports betting, while others aim to send the decision to voters for approval. However, as the legislative landscape remains fragmented, it is unclear whether Oklahoma will be able to reach a consensus on sports betting in the near future.

 

There's all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana.

A Shift in the Gambling Landscape

The ongoing battle between legal sports betting and the decline of iGaming in several states highlights the shifting dynamics of the U.S. gambling landscape. As lawmakers across the nation grapple with the pros and cons of expanding gaming, sports betting seems to have found a more receptive audience, while online casinos continue to face hurdles.

For Hawaii, the question remains whether the state's gamble on digital sports betting will pay off, or whether concerns over addiction and a lack of significant economic impact will derail the initiative. Meanwhile, the broader national trend indicates that while sports betting is increasingly embraced, the push for iGaming faces an uphill battle that is proving difficult to overcome.

In the coming months, it will be crucial to watch how states like Hawaii, New Hampshire, and Oklahoma continue to navigate the evolving world of gambling legislation, as the fate of iGaming remains uncertain in many parts of the U.S.