Despite heavy opposition, two no votes, and some “yay” votes with reservations, the Hawaii House Committee on Economic Development & Technology on Wednesday afternoon moved forward a bill that would allow for statewide online sports betting. The bill advanced 5-2, including two “yes” votes with reservations.
The committee explored and heard testimony on many facets of legalizing sports betting. Forty-one people or groups testified in opposition to the bill while 11 testified in support. Not all witnesses were present or gave verbal testimony.
Rep. Daniel Holt, who previously has championed legal sports betting, voted in favor of the bill, but before the vote said, “I appreciate you moving this forward, and all the work you have done, but it was not my idea and I was not consulted, and I just want to put that out there.”
Among the opponents of HB 2570 were multiple government agencies, including the state attorney general’s office, Hawaii’s police department, and the department of health, in addition to representatives from the anti-gambling lobby, and individual citizens.
The most repeated reason for opposition was how it will affect the fabric of the community, including one woman who said her family lost its home when she was 5 years old due to her father’s gambling addiction, “which probably started innocently with sports betting.”
City of Honolulu prosecutor Steve Alm told the committee that “sports betting is already tarnishing sports,” in reference to several major sports betting scandals in MLB and the NBA. He went on to say that “sports betting affects lower income folks more than high income folks” and that a San Diego State University study has shown that 96% of bettors lose, “so that means we are making money off those who are addicted, and I don’t think we want to be in the addiction-for-profit business.”
Prediction markets, RG, and more
Les Bernal, representing Stop Predatory Gambling, pointed to what he says is a conflict. In recent months, major sports betting companies including DraftKings, Fanatics Sportsbook, and FanDuel, all members of the Sports Betting Association (SBA), which testified in favor, have begun to offer prediction markets. The platforms, legally considered financial products that are regulated by a federal agency, offer sports event contracts that mimic state-regulated sportsbooks.
These companies are already “circumventing state laws with prediction markets,” he said. “They are violating state laws right now, so what kind of partner will they be? It’s a testament of the values as companies, and antithesis of the aloha values of your state.”
Kathleen Owen testified on behalf of the SBA, but did not address the prediction market question. She did, however, point to the idea that illegal gambling is already taking place in Hawaii, and those dollars are going offshore with no “oversight.” In addition, she spent significant time talking about and answering questions around the responsible gambling tools, including time and deposit limits, used by the companies she represents.
During a question-and-answer period, committee chair Rep. Greggor Ilagan drove the conversation, clearly in support of the measure. He asked questions of opponents that appeared as attempts to discredit them, and also gave Owen a platform to give more detailed information about responsible gaming and integrity issues.
Conversely, Rep. Adrian Tam said he was “skeptical” that all gambling companies have the resources needed to properly monitor players for gambling addiction.
What’s in the bill
HB 2570 would require a minimum of six online sports betting platforms, and does not allow for in-person wagering. The proposal calls for a universal launch date, a 15% tax on adjusted gross revenue, and a $500,000 application and annual renewal fee. Licenses would be valid for five years, and sports betting would be regulated by the Department of Business, Economic Development, and Tourism.
Holt, who sponsored a bill that last year made it to conference committee, said in April that lawmakers would have to “work harder” for consensus this session. But given his comments ahead of the vote, he doesn’t believe that Ilagan, who headed the conference committee in 2025, has found the sweet spot. Holt said in 2025 that the legislature needed to come to an agreement on a tax rate, fees, and other key issues.
Holt’s bill moved last year, also in spite of intense opposition.
In other news …
The committee also heard testimony about HB 1945, which would allow for gambling on cruise ships in Hawaii waters, or in some cases while docked. The bill would impose a 20% tax on gambling revenue. Many opponents echoed the concerns shared about the legal sports betting bills, and the head of the Department of Commerce and Consumer Affairs (DCCA) said her agency was not equipped to oversee gambling on cruise ships. The same agency was flagged in a legal online sports betting bill last year to regulate that industry, and at that time, a representative said the DCCA did not have the manpower or expertise to do so.
The committee opted to defer the bill rather than vote on it.
