Hopes of bringing legal online sports betting to Hawaii were dashed as lawmakers failed to finalize House Bill 1308 before the legislative deadline. Despite unprecedented progress in moving the measure through the session, key disagreements prevented its approval, leaving proponents focused on regrouping for a future attempt.

Hawaii’s legislative session closes without sports betting legalization:

Negotiations between the House and Senate ultimately collapsed over unresolved issues such as tax rates, licensing structures, and who would oversee sportsbook operations. “We put our best effort forward, we got it very far this year, this deep into conference, but it seems as if we have not come to agreement on details: the tax amount who would operate, would house the operation of the sports betting and give out the license and licensing fees,” said State Rep. Daniel Holt.

State Rep. Greggor Ilagan echoed the sentiment, acknowledging during a joint committee hearing, “We’ve been working on [HB 1308], and at this moment, it’s very hard to get a compromise, and at this point we have a House and Senate disagreement.”

The missed agreement means HB 1308 will not proceed to a final vote before Hawaii’s legislative session ends on May 2.

While the bill’s failure disappointed supporters, many emphasized that significant groundwork had been laid for future legalization efforts. A working group composed of law enforcement, tourism, government, and industry experts will continue evaluating the potential framework for gambling regulation.

“There’s never been a bill that went this far in gaming,” noted Cliff Laboy, a lobbyist for T. George Paris and the Hawaii Ironworkers Stabilization Fund. Laboy added, “Get the task force, go out there, find out, study, do your due diligence, come back, go back to the table and figure out which way you want to go. But Hawaii needs something like this.”

Had the bill succeeded, Hawaii would have become the 40th U.S. state to legalize mobile sports betting and the 32nd to allow it statewide. Governor Josh Green had signaled his support, saying earlier, “Look, as long as there’s 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.”

HB 1308 initially proposed a 10% tax rate on gross gaming revenues and a $250,000 licensing fee, but those financial specifics were removed in the House version, adding to the legislative friction.

Opposition voices cite risks of expansion:

Strong opposition came from several corners, including Honolulu Mayor Rick Blangiardi, Prosecutor Steve Alm, and Police Chief Arthur Logan, who warned about potential social harms in a joint statement: “Online sports betting is not harmless entertainment — it’s a high-tech pipeline to addiction and financial ruin,” Alm stated.

Critics like Les Bernal, National Director of Stop Predatory Gambling, praised the legislature’s decision. “The legislature in Hawaii stood up on behalf of the people of Hawaii and said we are going to say no the greed of outside gambling interests,” Bernal said, calling Hawaii “a model for the rest of the country.”

Les Bernal further pointed out that without legalized gambling, citizens benefit from “less taxes” and “more economic opportunity,” citing other states’ struggles with the social consequences of online gambling.

According to Hawaii News Now, concerns over increased access to gambling were also voiced by state Rep. and minority leader Lauren Matsumoto, who said, “Once you have that toehold, that leads to the foothold that could lead to casinos here in Hawaii so I think it’s important for us to tread cautiously because once you open that up so there’s no taking it back.”

Additionally, Dawn O’Brien, an Aloha Ambassador working in schools, shared her reservations, saying, “Those who came out were passionate, both for and against. I am obviously against, I work in many schools representing the choose emotional social aloha learning program, and I’ve seen the ravaging effects of gambling.”

Looking ahead to 2026:

Supporters intend to continue working through the issues that derailed HB 1308. Holt remarked, “It is what it is, and we just got to work harder next year, try to answer the questions that the rest of the members and the public has and see if we can capture this tax revenue that we much need for our state.”

The Sports Betting Alliance estimates that Hawaii residents already wager about $300 million annually via offshore sites and illegal bookmakers. Advocates argue that regulating the activity could redirect this flow into legitimate channels while creating a dedicated Problem Gambling Prevention and Treatment Special Fund under the Department of Health.

With the 2024 effort falling short, many anticipate that the push to legalize online sports betting — and possibly fantasy sports — will return with renewed energy in the 2026 legislative session.