Hawaii legislators are again attempting to legalise sports betting after coming close to passing a bill last year, though a newly formed gambling study group could complicate the 2026 effort. Lawmakers introduced companion bills, SB 3303 and HB 2570, last week that would authorise regulated sports betting in the state. Committee hearings have not yet been scheduled. The legislation follows a near-miss in 2025, when a sports betting proposal advanced through both chambers before stalling in conference committee over unresolved differences.

Among the House sponsors is Representative Daniel Holt, a long-time advocate for sports betting who helped shepherd last year’s bill through the legislative process. That proposal ultimately failed when House and Senate negotiators could not agree on a final version before the session ended. Governor Josh Green said at the time that he would not veto a sports betting bill if it reached his desk. “It is what it is, and we just got to work harder next year, try to answer the questions that the rest of the members and the public has and see if we can capture this tax revenue that we much need for our state,” Holt said following last year’s collapse.

While lawmakers are returning to the issue with renewed momentum, the current effort faces a potential speed bump. Hawaii remains one of only two states, along with Utah, without any form of legal gambling, and legislators last year created a formal working group to study gambling expansion before taking further action.

Gambling study group adds new variable

The Tourism and Gaming Working Group was established to examine whether and how gambling could be expanded in Hawaii. The 24-member panel includes state lawmakers, law enforcement officials and representatives from the gaming industry. It is required to submit findings and recommendations by late 2026 or early 2027.

In addition to sports betting, the group is tasked with evaluating whether a casino should be included in the proposed 98-acre New Aloha Stadium Entertainment District. The panel met for the first time last month, focusing largely on the scope of illegal gambling activity already taking place in the state.

Department of Law Enforcement Director Mike Lambert told the group that as much as $800 million may be wagered illegally each year in Hawaii. Supporters of legalisation have cited those estimates as evidence that regulated betting could capture existing activity and generate tax revenue, while opponents argue the figures underscore the risks of further normalising gambling. The working group plans to meet monthly through September, raising questions about whether lawmakers will want to act on sports betting legislation before the study process concludes.

The bills introduced this year would require Hawaii to issue at least six sports betting licences. Each licence would carry a fee of $500,000 for an initial five-year term. Sports betting revenue would be taxed at 15%. The proposals include several restrictions, such as a ban on wagering on youth sports and on collegiate events involving Hawaii-based teams. Regulators would also be responsible for overseeing compliance and consumer protections.

The structure differs from last year’s proposal, which would have authorised four sportsbooks and initially included a 10% tax rate. During the 2025 session, House lawmakers removed the tax provision before passing the bill, while the Senate later reinstated it. The disagreement proved fatal in conference committee, with no compromise reached before adjournment.

Supporters argue regulated sports betting could capture existing illegal wagering and generate new tax revenue for the state.

Broader gambling debate continues

Sports betting is not the only gambling-related issue under consideration this session. The first gambling bill introduced in 2026 would prohibit gambling within the Aloha Stadium Entertainment District, a move that runs counter to the study group’s mandate to consider a casino at the site. Lawmakers are also weighing a bill that would ban prediction markets from operating in the state. Representative Scot Matayoshi introduced HB 2198 after more than $488,000 was reportedly traded on prediction markets tied to Governor Green’s annual State of the State address. Matayoshi chairs the House Consumer Protection and Commerce Committee.

Another proposal, HB 1945, would allow gambling on cruise ships while in Hawaiian waters, subject to a 20% tax rate. Together, the measures reflect a Legislature grappling with whether to maintain Hawaii’s long-standing prohibition on gambling or begin allowing limited, regulated forms. Whether sports betting can advance ahead of the Tourism and Gaming Working Group’s recommendations remains an open question, but lawmakers’ willingness to revisit the issue suggests the debate is far from settled.