Could Legalized Sports Betting be Headed to Crypto Hub Hawaii? 

Hawaii has been the surprise of the first legislative session of the year, with an online sports betting bill passing through the House.

House Bill 1308 edged through the House by a 35-15 vote, making it the farthest a bill has ever made it in Hawaii’s legislature. It now moves to the Senate, where it will face staunch opposition.

No Legal Gambling, But Attractive Crypto Policy

The Aloha state is well-known in the cryptocurrency world for having attractive regulations for digital currency-led companies. It has attracted companies such as Coinbase, Metamask, Transak, BitPay and Trust Wallet after regulators decided in June that crypto companies’ business activities should not be classified as money transmission under Hawaii law.

Despite its forward-thinking crypto policy, Hawaii and Utah are among just two US states with no legal form of gambling. The state does not welcome retail casinos, so the chance of crypto casinos for Hawaiians is slim to none.

Representative Daniel Holt, highlighted the rise of illegal betting in a statement. He said: “Sports betting is already happening across our islands — it’s just happening through bookies and unsafe offshore websites that don’t have any consumer protections and allow minors to bet.”

He also emphasized the positive tax benefit that legalization could have for Hawaii. Proponents suggest that Hawaii could generate up to $20 million per annum in tax revenue if the bill is passed into law.

The bill also has garnered significant public support. More than 1,300 Hawaiian constituents contacted legislators to express support for legalized online sports betting. The debates heard arguments from the Sports Betting Alliance and heavy-hitters from the regulated sports betting world, such as BetMGM and DraftKings.

After passing through the hurdles of the House committees, the Senate will now deliberate. The companion bill, SB 1659, was deferred by the Senate Commerce and Consumer Protection Committee at the tail-end of February without as much as a vote. The Hawaii Senate also shelved plans for a casino in Honolulu and several other gambling propositions. Analysts strongly suspect that HB 1308 will head the same way despite strong momentum.

Vocal Opposition From Key Governmental Departments

There has also been vocal opposition to the legislation. The Attorney General’s Office, the Department of Business, Economic Development and Tourism and the Honolulu Police Department submitted written testimony against the bill. The Attorney General’s Office stated: “Studies have shown that legalized online sports betting results in adverse societal impacts, high costs to address those adverse impacts, and increased crime.”

Lee Bernal, the National Director of Stop Predatory Gambling, commented, “The lobbying effort in Hawaii is being driven by the greed of powerful, out-of-state financial interests who stand to reap hundreds of millions of dollars in profits at the expense of your constituents.”

The Senate has until May 2, 2025, to act on the bill before the legislative session ends. The outcome in the Senate is far from a forgone conclusion. With strong opposition from vital government agencies, and a long history of failed gambling legislation, it would be no surprise to see HB 1308 join the ever-growing pile of bills that nearly were.

In more positive news for gambling advocates, the Department of Business, Economic Development and Tourism will oversee a working group to study the economic impact of legalized gambling. The findings are expected by the start of the 2026 session, contributing further doubt to the chances of the House Bill.