Rolling the Dice in Paradise: Hawaii’s Casino Debate Heats Up
Aloha to Casinos? Hawaii’s Latest Bet Moves to Public Hearing
Hawaii’s Casino Bill Earns Traction in the Senate
Hawaii’s long-standing opposition to gambling may be about to say aloha to gambling. However, this does not include online casinos. On Monday, February 10, 2025, the Senate Committee on Economic Development and Tourism – Commerce and Consumer Protection (EDT/CPN) scheduled a public hearing for Thursday, February 13 for SB 893 SD1, the latest step in the debate over gambling in the Aloha State.
The decision follows last week’s public decision-making session by the EDT, where the committee recommended passage with amendments before immediately recommitting the measure. The session on Thursday, February 6, ended in a narrow 3-2 vote, and the following day, the measure was formally adopted with changes and sent back to EDT for further review.
If passed, Senate Bill 893 SD1, sponsored by Senator Dru Kahuna, would establish gambling regulations in Hawaii for the first time. However, it’s highly restrictive. Gambling would only be allowed in specific areas: the New Aloha Stadium Entertainment District and the Hawaii Convention Center.
The bill also imposes a 15% wagering tax on gross receipts and 20-year casino licenses.
List of US States that have introduced bills to legalize online poker and casino this month👇
Maryland
Virginia (postponed until 2026)
Indiana
Wyoming
Massachusetts
New York
HawaiiThis is New York’s fourth or fifth consecutive year attempt https://t.co/kMH57FqFbm
— Anuj Arora (@anuj2212) January 23, 2025
Breaking Down the Casino Bill and Its Impact
SB 893 SD1 proposes a highly regulated casino model with the Hawaii Gaming Control Commission overseeing licensing, taxation and regulatory enforcement to ensure compliance with the state’s gambling regulations.
Key points of the bill include:
- Limited Licensing: Only casinos in the designated areas would be allowed and licenses would be for 20 years.
- Strict Application Process: Casino operators must meet financial and operational requirements, pay a $1 million non-refundable application fee and a one-time $150 million license issuance fee before being approved.
- Wagering Restrictions: Physical casino venues only. No mobile gambling apps or online casino platforms at this time.
- Collegiate Sports Protections: No casino licenses would be issued to any operator that allows wagers on Hawaii collegiate athletics in any jurisdiction.
- Tax and Revenue Allocation: 15% of monthly gross receipts would go to state programs and additional funds for public safety at casino sites and compulsive gambling prevention.
- Commission Funding: $5 million per year from 2025 to 2027 to fund the Hawaii Gaming Control Commission to be repaid by operators once casinos are operational.
Hawaii’s Changing Stance on Gambling Regulations
Hawaii has long resisted gambling expansion, but the introduction of SB 893 SD1 reflects a growing interest in gambling regulations and casino legislation. The state remains one of only two in the US, alongside Utah, that frowns upon all forms of gambling. However, recent legislative efforts suggest a shift in attitudes.
Beyond SB 893 SD1, other gambling-related bills have been introduced in the 2025 legislative session, expanding the conversation beyond physical casinos.
- Senate Bill 1507 backed by Senate President Ron Kouchi proposes to create the Hawaii Lottery and Gaming Corporation which will oversee online poker, lotteries and virtual casino games. This bill will also allow multi-state gaming and tax-free incentives for tourist sweepstakes.
- House Bill 1308 and Senate Bill 1569 focus on online sports betting and fantasy sports with a 10% tax on adjusted gross receipts (AGR) and a licensing framework for multiple bet platforms.
- Senate Bill 1572 proposes both retail and online sports betting but with a 15% tax rate on AGR excluding fantasy sports.
- Senate Bill 373 is a standalone bill to regulate fantasy sports betting as a separate category from other gambling activities.
These bills show that lawmakers are looking beyond traditional casinos. With legit gambling sites popping up across the country, some Hawaii officials are pushing to modernize gambling regulations to compete with other states where online betting is already legal.
Hawaii and Utah are the only two states without Casino’s!! Wow! @VitalVegas
— StockStalker 🇺🇸 (@kadie1414) December 4, 2024
Hawaii’s Gambling Future: A High-Stakes Decision
The push to have casinos in Hawaii comes as other states are debating their gambling legislation. According to recent casino news, six states have casino legislation proposals and Virginia has already postponed their discussions until 2026. Wyoming is expected to do the same and probably will shelf HB 162 for another year if no last-minute changes happen this week.
Despite growing support for regulated casinos, there are still many hurdles. Cultural opposition, addiction concerns and economic uncertainty have blocked previous attempts to allow gambling in Hawaii.
Critics say even a small casino industry will lead to a larger expansion down the road. On the other hand, proponents argue that economic benefits, job creation, increased tourism revenue and tax contributions are reasons to legalize.
If passed, SB 893 SD1 would be a major shift in state policy, but even with legislative approval, the debate over what are gambling regulations in Hawaii is far from settled.
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