Hawaii, one of only two U.S. states where gambling is completely banned (along with Utah), may be close to a turnaround. A bill that would allow online sports betting through a state-run platform has passed both legislative chambers and is now in the key conference committee stage, where differences between versions will be negotiated.
Read also: Juan Camilo Carrasco de Asensi Lawyers: A better bet
This proposal represents a potential transformation for a state that has historically rejected any form of legal gambling. If approved, it would not only enable online activity but also establish its own regulatory framework to manage licensing, consumer protection, and tax collection.
A state model to control the activity.
The legislation, driven in its most recent version by Representative Daniel Holt, proposes the creation of a Hawaiian Sports Wagering Corporation, a public entity responsible for operating and overseeing the online sports betting market.
Unlike other states where competition among private operators is allowed, Hawaii proposes a centralized approach: a single state platform, which concentrates the activity and the generated revenue. This responds, in part, to the strong political and social resistance that has historically existed in the state regarding gambling, and the need to ensure maximum control over its implementation.
Economic arguments: revenue versus risks
One of the main drivers behind the bill is the possibility of capturing tax revenue in a context where thousands of residents already access sports betting through illegal platforms or those in other states.
Previous studies cited by lawmakers estimate that Hawaii could generate between $7 and $10 million annually in tax revenue if the activity is properly regulated. Furthermore, the impact of the black market would be reduced, responsible gambling mechanisms would be established, and local consumers would be protected from abusive practices.
However, critical voices point out that the introduction of gambling into a culture accustomed to these practices could bring negative consequences, especially in terms of public health, gambling addiction, and social cohesion. These arguments still carry significant weight with parts of the Senate and community leaders.
Read also: An oasis in informality: the gaming industry in Peru
What’s next in the legislative process?
The bill is currently in the conference committee, a key stage where representatives and senators must agree on a common version of the text before sending it to the governor. In previous years, similar attempts failed at this same stage, making the outcome still uncertain.
If consensus is reached, Hawaii could take a historic step and become the 39th state to legalize sports betting since the U.S. Supreme Court overturned the federal ban in 2018.
A move with national resonance
The eventual legalization of gambling in Hawaii would have implications beyond the state. It would represent the definitive penetration of legal gambling into almost the entire U.S. territory, leaving Utah as the only bastion without regulations in this regard.
Furthermore, it would set a precedent on how to adapt unique state models in territories that have so far opted for total prohibition, showing that it is possible to open the market under strict conditions and public supervision.
A decision with long-term impact
The discussion about sports betting in Hawaii is not limited to economics. It is a cultural, political, and social conversation that puts at stake the development model the state wants for the future. Legalizing gambling would mean accepting its presence as part of the modern digital and economic environment, but it would also assume the responsibility of regulating it firmly.
Whatever the outcome of the conference committee, the mere progress of the bill is in itself a sign that paradigms surrounding gambling are changing, even in the most conservative places.
Read also: Luis Gama: “It is time to talk about play: regulate, prevent, and protect citizens”.
