Hawaii lawmakers fail to reach agreement on sports betting, leaving state without any legalized gambling

Efforts to legalize sports betting in Hawaii came to an end Friday after lawmakers failed to reconcile differences between competing House and Senate versions of a proposed bill. Without an agreement, the measure will not reach a final vote before the legislature adjourns on May 2.

House Bill 1308, which sought to establish a regulated framework for online sports wagering in the state, faltered during a joint conference committee meeting. Representative Greggor Ilagan, speaking during the session, acknowledged the impasse.

"At this moment, it's very hard to get a compromise, and at this point we have a House and Senate disagreement," he said. "We could work on this so we can meet the deadlines and get a better bill at the next legislative session."

The Senate’s version of the bill had proposed a 10% tax on gross gaming revenue and a $250,000 licensing fee for operators, terms that were later removed from the House’s draft, leading to disagreements over appropriate tax rates and licensing costs. Without an identical version passed by both chambers, Hawaii law bars further advancement of the legislation.

Governor Josh Green had previously signaled he would likely sign the bill if it reached his desk, noting the need for responsible safeguards around problem gambling. "As long as there are some safeguards with gambling addiction services and so on, if the Legislature goes the full way and passes it, I'll likely let it become law," Green told Hawaii News Now earlier this month.

The bill's collapse maintains Hawaii's position as one of only two states, alongside Utah, without any form of legalized gambling. Had the measure passed, Hawaii would have become the 40th state to approve online sports betting, joining jurisdictions like Maine, Vermont, and Wyoming in allowing mobile-only wagering without in-person sportsbooks.

Supporters had argued that regulated betting could channel an estimated $300 million in illegal annual wagers into the formal economy, generate tax revenue, and fund a dedicated Problem Gambling Prevention and Treatment Special Fund.

Major operators such as DraftKings, FanDuel, BetMGM, and Fanatics were expected to seek licenses had the market opened, alongside other national brands like Caesars, ESPN BET, and BetRivers.

However, opposition remained strong throughout the legislative process. Honolulu Mayor Rick Blangiardi, Prosecutor Steve Alm, and Police Chief Arthur Logan issued a joint statement Thursday warning lawmakers against the potential risks of online gambling.

"Online sports betting is not harmless entertainment — it's a high-tech pipeline to addiction and financial ruin," Alm said, citing concerns about financial instability and family breakdowns tied to gambling addiction.

Under the proposed legislation, Hawaii's first legal sportsbooks would have launched by January 1, 2026, with regulators expected to license at least four mobile operators.

The plan was structured to favor a competitive digital market without requiring partnerships with existing brick-and-mortar establishments, simplifying the licensing process. Despite the setback, lawmakers indicated interest in reviving efforts during the next legislative cycle.