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Lawmakers at the Hawaii State Capitol have put fresh gambling bills on the table, marking the latest attempt to test legalization in Hawaii. The proposals range from a casino framework in Honolulu to a ban on prediction markets and plans for cruise ship gaming.
At the same time, a new tourism and gaming working group has begun its review. The group had its first meeting last Thursday (Jan 22), which featured testimonies from law enforcement, prosecutors, developers, and industry voices.
Another push at legal casinos
HB 2222 would allow one casino in Honolulu and create a Hawaii Gaming Control Commission to oversee licensing, regulation, and taxation. Applicants must pay a $1 million nonrefundable fee and $5,000 annually, with licences lasting 20 years.
Table games would be taxed at 15%, while slots and other games would face a 20% rate. The bill also sets up a State Gaming Fund and requires programs for compulsive gambling prevention and treatment.
The second gaming bill is HB 1945, which proposes regulated gambling on cruise ships within Hawaii waters starting in 2027. Operators would pay taxes on adjusted gross receipts and meet reporting rules set by the Department of Commerce and Consumer Affairs, with supporters seeing cruise ship gaming as a gradual way to introduce legal wagering statewide.
Unregulated market sees up $800 million annually, investigators claim
The working group was created under a legislative resolution that directs the Department of Business, Economic Development, and Tourism to study how other states regulate gambling, review past Hawaii proposals, and build a full tourism and gaming policy framework.
Its assignment includes looking at possible gaming at the New Aloha Stadium Entertainment District and on vessels in Hawaii’s exclusive economic zone. Findings will be reported back to lawmakers under the timeline set in SCR 121.
In its first meeting, the divide between supporters and opponents of legal gambling quickly showed. Law enforcement and prosecutors warned about crime, addiction, and the risks of mobile betting, while developers and industry voices pointed to jobs, tax revenue, and the chance to regulate what is already happening underground.
Officials described the session as fact-finding, not a vote, but testimony from police and investigators made clear that illegal gambling is thriving. Honolulu police reported about 50 game rooms on Oahu, and the Department of Law Enforcement estimated that $700–$800 million moves through Hawaii’s unregulated market each year.
Prosecutor Steve Alm added that mobile sports betting could turn into “a casino in the privacy of their living room,” urging lawmakers to consider social costs alongside revenue.
Prediction markets ban
Another bill, HB 2198, also sees Hawaii join the fast-growing list of states moving against prediction markets. The bill targets the sector, clearly defining it as illegal gambling and calling for a complete ban.
