Hawaii lawmakers have taken an initial step toward authorizing online sports wagering, advancing a proposal that has drawn vocal resistance from residents and advocacy groups.
The House Committee on Economic Development & Technology approved HB 2570 in a 5-2 vote, with some supporters expressing reservations. The bill proposes creating a regulated framework for online sports betting in a state that has prohibited gambling in all forms since statehood in 1959.
Licensing Rules and Revenue Plan
Rep. Daniel Holt introduced HB 2570 to establish a legal structure for digital sports wagering platforms. The measure would permit at least six operators to enter the market. Each would pay $500,000 for an initial license and $500,000 annually for renewal.
The proposal also sets a 15% tax on sports betting revenue, with funds intended in part for problem gambling prevention programs.
Holt acknowledged frustration over changes to the bill’s development. He stated, “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.” The bill now advances for further review and possible amendments.
Community Pushback and Concerns Over Social Impact
Opposition testimony dominated the public hearing. Forty-one individuals and organizations submitted statements against the proposal, many sharing accounts of gambling addiction and its financial consequences.
Honolulu prosecutor Steve Alm warned lawmakers about the broader implications of expanding wagering. He said “sports betting is already tarnishing sports,” and questioned whether Hawaii should adopt a policy that could generate revenue from addictive behavior.
Les Bernal of Stop Predatory Gambling also criticized the measure. He argued that certain sportsbook companies already bypass state prohibitions through prediction markets, which function as financial products tied to event outcomes. Bernal said such practices conflict with the “Aloha spirit” and could complicate enforcement of gambling laws.
Supporters of legalization countered that residents already place bets through offshore and unregulated platforms. They argued that a regulated market would allow Hawaii to collect tax revenue currently flowing elsewhere while imposing consumer protections.
Kathleen Owen, representing the Sports Betting Alliance, said regulation would help keep betting activity within a controlled system and reduce reliance on offshore operators. Proponents maintain that licensing requirements and responsible gambling safeguards would offer oversight that illegal markets lack.
Separate Proposal Targets Prediction Markets
Lawmakers are also reviewing HB 2198, a separate measure that would prohibit prediction markets in Hawaii. These platforms allow participants to wager on the outcomes of events, including sports contests, and critics argue they operate in a gray area outside traditional gambling statutes.
The debate over prediction markets has intensified as some national sportsbook operators expand into that space. Opponents describe them as an indirect way to offer sports betting without formal authorization. The discussion has added another layer to the legislative review, as policymakers weigh how to define and regulate emerging forms of wagering.
Although HB 2570 cleared its first hurdle, lawmakers face sustained scrutiny from constituents and advocacy groups. As the bill proceeds, legislators must decide whether projected tax revenue and regulatory oversight outweigh the cultural and social concerns raised during testimony.
Source:
“Hawaii Advances Bill for Online Sports Betting Amid Strong Opposition”, news.worldcasinodirectory.com, February 12, 2026
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