Hawaii Lawmakers Eye Gaming Once Again

Hawaii has long been one of the key outliers when it comes to US gaming, since it’s the only state besides Utah to have no form of legal gambling whatsoever. A newly appointed Tourism and Gaming Working Group, however, is currently assessing whether legalizing gaming will be worth it.

In the meantime, the new legislative session continues, with lawmakers still eyeing opportunities to get some gaming underway.

New Proposals Seek to Add Casinos, Gaming on Cruise Ships

While Hawaii currently has no gaming, two newly submitted measures seek to change that. The first of them, HB 2222, seeks to create a casino framework and capitalize on the growing demand for gaming products.

Per the bill, Hawaii would create a Gaming Control Commission that would be responsible for regulating the market and handling licenses and taxes. In terms of licenses, operators will have to pay a $1 million application fee plus an additional $5,000 a year if a license is granted. Licenses would be valid for 20 years each.

The proposed taxation regime, on the other hand, will require casinos to pay a 15% revenue tax on table games and a 20% revenue tax on other forms of gambling. If HB 2222 is signed into law, some of this money will fuel a new State Gaming Fund. The bill also proposes a variety of safer gaming measures.

In the meantime, a separate measure, HB 1945, seeks to permit cruise ship gaming. This measure will allow the state to tap into Hawaii’s status as a major destination for tourism without any drastic changes, such as the ones outlined in HB 2222. Instead of creating a new regulatory body, cruise ship gaming will be under the purview of the Department of Commerce and Consumer Affairs.

Carryover Measures Propose Betting & Lotteries

While lawmakers have submitted new proposals to launch gaming, a few measures from previous sessions also remain on the table. These include proposals to launch lottery gaming, sports betting, and a new stadium.

Rather than looking at casinos, HB 1308 proposes regulating sports betting and responding to the growing demand for wagering products across Hawaii and the US as a whole. The measure had previously gained traction, only to stall due to disagreements about some of the details.

At the same time, a pair of carryover companion measures, HB 1434 and SB 1507, seek to create a lottery regulator and launch legal lottery gaming in the state.

Lastly, SB 893 would add casino gaming to the New Aloha Stadium Entertainment District and the Hawaii Convention Center.

Hawaii Seeks to Block Prediction Markets

While the aforementioned measures seek to legalize one or another form of gaming, another newly introduced bill, HB 2198, seeks to respond to the encroaching prediction markets format and prohibit the vertical in the state.

Under the bill, prediction markets will be clearly defined as illegal gaming in Hawaii, preventing their operators from legally offering them locally.

Prediction markets have insisted that they offer CFTC-licensed products and, as such, can operate in all states, prompting strong pushback from the traditional gaming space.