Two gambling bills pick up speed in Hawaii legislature

• HB2570 and HB2198 picked up speed in Hawaii, with House representatives approving the proposals on their second reading
• Kathleen Owen, a representative of the Sports Betting Alliance, spoke during a recent public debate, revealing that betting is already happening in the state via offshore, illegal operators
• The Honolulu Prosecutor, Steve Alm, acknowledged the negative impact of betting, explaining the activity "tarnishes sports"

Two bills, proposing to regulate gambling activities in Hawaii, recently picked up speed.

That's the case for House Bill 2570 (HB2570) as well as House Bill 2198 (HB2198), both of which passed their second reading in the state House.

At the same time, supporters and opponents of regulating gambling in Hawaii expressed their opinions in favor and in opposition to the bills.

HB2570 and HB2198 gain traction

Under HB2570, which focuses specifically on the regulation of sports betting and fantasy sports, a legal loophole would be addressed that currently enables the activities to operate in the state.

This isn't uncommon across the country, as some states do not explicitly forbid a certain activity, such as sports betting in this case, and while technically it isn't illegal to wager on sports, the activity isn't regulated.

Per HB2570, operators would need to apply for a license and pay a $500,000 fee, along with a $500,000 license renewal fee after five years.

The proposal calls for the implementation of 15% tax on the total adjusted gross sports wagering receipts, with proceeds benefiting different organizations across Hawaii.

On the other hand, HB2198 focuses on changes to the definition of gambling in Hawaii.

The bill proposes to include "prediction markets in the definition of "gambling" by specifying that the purchase, sale, or financial speculation of securities or commodities on the outcome or future contingent events related to catastrophe, contests, death, legislation, national security, people, politics, and sports."

Gambling expansion supporters and anti-gambling proponents voice their concerns

During a public hearing last week, the Hawaii House of Representatives heard the testimony of supporters and opponents of regulated gambling.

Speaking in support of HB2570, Kathleen Owen, a representative of the Sports Betting Alliance (SBA), acknowledged that betting is already taking place in Hawaii.

She explained that there is a "robust illegal market that has thrived in the absence of a legal and regulated market."

Pointing to data from the American Gaming Association, Owen said the SBA estimates Hawaii residents have wagered more than $680m via illegal betting operators in 2025.

At the same time, she said that illegal, offshore gambling operators offer no protection for the consumers.

Steve Alm, the Honolulu Prosecutor, had a different opinion from Owen. "We do stand in strong opposition to this," he said, referring to HB2570.

Alm went on to highlight the negative impact of betting, saying the activity "already tarnishes sports."

He also highlighted a concerning trend that involves college athletes and even professional NBA athletes in prop bets.

The Prosecutor added that at the same time, many athletes are being harassed by losing bettors, and the activity impacts lower-income families more than upper-income families.

Alm pointed to recent research, which found a staggering 96% of online bettors lose, and only 4% win.

Concerningly, the small percentage of winners soon see their accounts restricted, the Prosecutor warned.

Progressing further, the two bills have successfully passed their second reading in the state House.

However, before proceeding, they need to undergo a final vote from the House committee.

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