Hawaiian Lawmakers Take First Steps Toward Studying Legalized Gambling

^{Brandon Maka'awa'awa, Vice President of the Nation of Hawaii, addresses lawmakers during the inaugural meeting of Hawaii’s Tourism and Gaming Working Group. (Photo: @hawaiiannational via Instagram)}

Legislators in Hawaii are taking another step towards legalizing gambling in the state. The new Tourism and Gaming Working Group met for the first time on Thursday, with lawmakers considering how to build a framework for bringing gambling tourism to the island state.

Hawaii is currently one of two states, alongside Utah, with no legalized gambling or lotteries. The lawmakers in the group have been asked to come up with ideas that take into consideration factors like possible economic growth and tax revenue, the harms of problem gambling, and the costs of enforcement and regulation.

Sports Betting Nearly Reached the Finish Line in 2025

Hawaii has seen renewed interest in casinos, sports betting, and other potential gaming avenues in recent years. State Representative Daniel Holt (D-Honolulu) introduced HB 1308 last year, which would have legalized online sports betting in the state. That bill ultimately died in the conference committee after passing in both the state House and Senate last session, but Holt plans to introduce the idea again.

Another proposal, SB 893, would have established a Hawaii Gaming Control Commission and allow for casinos to be a part of the New Aloha Stadium Entertainment District. That bill also failed in session last year.

But the new working group is revisiting casino gambling at the stadium site, noting that it’s likely that additional revenue streams are necessary in order for the stadium to be viable.

“I do know from all of our data and information that stadiums are not money makers all over the country,” Jimmy Tokiokoa, Director of the Department of Business, Economic Development and Tourism, said via KHON 2. “So if we’re going to have a first-class stadium, we need to maintain it, and it’s not like we can have an activity in a stadium three or four times a week. It just doesn’t happen. So some of that maintenance is going to have to be paid by other revenues. And this could be one of them.”

Law Enforcement Says Illegal Gambling Rampant in Hawaii

Hawaiian law enforcement officials also updated legislators on the amount of illegal gambling that currently takes place in the state. According to officials, the Honolulu Police Department is currently aware of about 50 illegal game rooms across Oahu, down from more than 100 before stronger enforcement measures began. 

Department of Law Enforcement (DLE) Director Mike Lambert estimated that the illegal gambling operations may bring in $700 million to $800 million a year across the state, with some game rooms may  taking in as much as $10,000 or more a day. 

Some supporters of legalized gaming argue that regulation would help remove demand for illegal gaming halls. 

“Even though the prohibition of gaming is in place, we have illegal gambling happening,” State Representative Greggor Ilagan (D-Lower Puna) said. “That is something we could simply ignore, or we could figure out a way, not only to control and manage what’s happening now, and figure out with our working group and with our expertise on how to improve the current situation we are at.”

However, Honolulu Prosecuting Attorney Steve Alm warned that legalization would add more enforcement responsibilities for officials, rather than simplifying things.

“I think the unanswered question from this hearing is, even if you legalize gambling, that isn’t going to get rid of these game rooms,” Alm said. “Most of the people go there because you can smoke, you can get drugs.”

The working group is expected to present its findings to the Hawaii Legislature in time for the 2027 legislative session.