Hawaii House Committee Moves Sports Betting Bill Forward After Spirited Hearing

• The Hawaii House Economic Development & Technology Committee moved an online sports betting bill forward
• The committee moved the bill forward by a 4-3 vote after an intense hour-long discussion on the legislation
• HB 2570 will allow for a minimum of six online sports betting licenses in the Aloha State

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The Hawaii House Economic Development & Technology Committee moved an online sports betting bill forward after an intense, hour-long discussion on the bill.

Members of the Hawaii House Economic Development & Technology Committee moved HB 2570, which seeks to legalize Hawaii online sports betting, out of committee by a 4-3 vote, with one “yes” vote being declared with reservations.

State legislators are jumping back into the Hawaii online sports betting debate this legislative session after efforts stalled out at the end of the 2025 session.

More Than 50 Submit Testimony on Bill

Rep. Daniel Holt (D-28) recently introduced HB 2570, which seeks to legalize online sports betting in the state. The legislation will allow for a minimum of six online sports betting licenses for applicants and will tax sports betting at a rate of 15% of adjusted gross sports betting revenues. The suggested tax rate is higher than 2025 legislation that only floated a 10% tax rate, which several lawmakers believed to be too low to be worthwhile for the state.

Under the bill, Hawaii online sports betting will be regulated by the Department of Business, Economic Development, and Tourism. The fee for an initial license will be $500,000 and licenses will be valid for three years. Renewal fees will also be $500,000.

More than 50 individuals submitted testimony to the committee regarding the bill, though not all actually appeared in the hearing. In total, 52 pieces of testimony were submitted, with 41 in opposition to the bill and 11 in favor.

Steven S. Alm, the elected Honolulu prosecuting attorney, spoke out against the bill, decrying online sports betting and its effects on gambling addiction and sports throughout the country.

“Sports betting is already tarnishing spots. We are having constant problems across the country with college players, NBA players, getting involved in prop betting and the like. Sports betting affects lower income folks more than upper income folks. Athletes are getting harassed by losing bettors online or in person. Research by the University of California San Diego found 96% of online sports bettors lose, and only 4% win, and they soon find their accounts severely limited,” he said.

Jordan A.K. Ching, Deputy Attorney General, reported to the committee that the Department of the Attorney General is strongly in opposition of the bill. Legalized gambling, Ching noted, is associated with well-studied public health and safety concerns.

The legislation only provides limited regulation and minimal consequences for unlicensed sports betting by operators and supplier who are required to be licensed, he said.

“The Department is particularly concerned that the bill exempts fantasy sports contests from existing gambling laws without establishing any licensing, regulatory oversight, consumer protections, or enforcement framework for fantasy sports operators,” Ching said.

The majority of the hearing, however, consisted of Committee Chair Greggor Ilagan (D-4) asking pointed question of those in opposition as to their reasoning for opposing the bill. Ilagan was clearly in favor of the bill, asking a number of questions regarding the arguments of those who were not in favor of legalized online sports betting.

Ilagan seemed to be more in line with Kathleen Owen, who testified in favor of the bill on behalf of the Sports Betting Alliance.

“Online sports betting is already happening in Hawaii. Their is a robust illegal market that has thrived in the absence of a legal, regulated market. Based on information published by American Gaming Association, the people of Hawaii have wagered more than $680 million in illegal markets 2025, an increase of over 140% since 2022,” she said.

These illegal bets, she reported, are typically placed on offshore markets or with illegal bookies in the state.

Online Sports Betting Bill Details

If approved, Hawaii must launch its online sports betting market within 180 days of the bill being signed into law.

The legislation will allow sports betting on college sports, but will prohibit betting on any events that include a Hawaii college or university. This prohibition will not extend to events being held in a tournament, such as the NCAA basketball tournaments.

Tax revenues will be allocated as follows:

• 2% to the University of Hawaii system to be distributed to the University of Hawaii at Manoa athletic department
• 2% to a Native Hawaiian organization
• 1% to the Hawaii Employees Lifeline Program
• 10% to the general fund (7% into the problem gambling prevention and treatment special fund and 7% used for programs that support education)