Hawaii Considers Gambling Legalization: Will 2025 Be the Year?

Hawaii’s legislature is poised to tackle the contentious issue of gambling legalization, with multiple bills on the docket for 2025. Proposals range from establishing a state lottery and online casino games to permitting sports betting and creating a single charitable card room. If successful, these measures would mark a historic shift for a state long resistant to gambling.

For the third year in a row, gambling legislation is under consideration. While previous efforts fizzled, the new bills offer a fresh approach, potentially signaling a turning point. Central to the debate is the creation of a gaming regulatory body, a proposed lottery, and the possibility of online gambling.

Senate President Ron Kouchi and Rep. Nadine Nakamura are behind SB1507 and its House companion bill, which would establish the Hawai’i Lottery and Gaming Corporation (HLGC). This entity would oversee games of chance and skill, such as lotteries, poker, and casino games, though sports betting is explicitly excluded.

The HLGC would also have the authority to partner with commercial operators to provide online gaming and collaborate with other states for multistate lottery games. Interestingly, the Corporation could use its gaming platform to offer sweepstakes and free-play games to attract tourists.

 

Focus on Charitable Gaming

Another bill, HB1466, proposes a social gaming control commission to oversee a single charitable card room. This facility would host peer-to-peer games like poker, funded by membership fees and a “consumption tax” on the games. Proceeds would support housing development, adding a community-focused angle to the gambling discussion.

Sports betting returns to the legislative agenda with HB1308 and SB1569. While past attempts at regulating sports wagering failed despite clear funding plans, this year’s standalone proposals aim to separate the issue from broader gambling debates.

SB1507 is notable for its emphasis on online gambling, with provisions for lottery games, interactive instant-win games, and draw games. The potential for an online-only casino operation—without permanent in-person facilities—could set a precedent in the U.S. if enacted.

The proposed Hawai’i Lottery and Gaming Corporation (HLGC) would oversee online and in-person gambling, including lotteries, poker, and casino games, but explicitly excludes sports betting.

Challenges and Opportunities

Hawaii's opposition to gambling has deep cultural and social roots. However, proponents argue that regulated gambling could provide significant revenue for public programs. By explicitly excluding sports betting from the lottery bill and framing gambling as a tool for economic development, these proposals may find broader appeal.

Whether 2025 marks a turning point for gambling in Hawaii remains uncertain. The innovative structure of this year’s bills suggests lawmakers are exploring new ways to balance economic benefits with community concerns. As these proposals move through the legislative process, the potential for a historic shift looms large.