The Hawaii House Committee on Economic Development & Technology voted Wednesday to advance a bill allowing statewide online sports betting.
HB 2570 would allow a minimum of six online sports betting platforms, with no in-person wagering. The proposal sets a universal launch date, a 15% tax on adjusted gross revenue, and a $500,000 application and annual renewal fee. Licenses would last five years, and the Department of Business, Economic Development, and Tourism would regulate the industry.
The measure, HB 2570, passed 5-2, including two “yes” votes cast with reservations. The committee heard extensive testimony on the proposal, with 41 individuals and organizations speaking in opposition and 11 in support. Not all witnesses provided verbal testimony.
Rep. Daniel Holt, a longtime supporter of legal sports betting, voted in favor of the bill but emphasized he was not consulted on its current draft. Holt, whose previous sports betting bill advanced last year amid similar opposition, said lawmakers must “work harder” to achieve consensus on key issues such as tax rates and licensing fees.
Opposition came from multiple government agencies, including the state attorney general’s office, the Honolulu Police Department, and the Department of Health, as well as anti-gambling groups and private citizens. Many opponents cited concerns about gambling’s impact on families and communities.
City of Honolulu prosecutor Steve Alm highlighted major sports betting scandals in professional leagues and warned of broader societal risks. “Sports betting affects lower-income folks more than high-income folks,” he said, citing a San Diego State University study showing that 96% of bettors lose. “That means we are making money off those who are addicted, and I don’t think we want to be in the addiction-for-profit business.”
Les Bernal of Stop Predatory Gambling warned of potential conflicts of interest. He noted that major sports betting companies, including DraftKings, Fanatics Sportsbook, and FanDuel, which support the bill, are offering prediction markets that circumvent state regulations.
“They are violating state laws right now, so what kind of partner will they be? It’s a testament to the values of these companies, and antithesis of the aloha values of your state,” Bernal said.
Kathleen Owen, representing the Sports Betting Association, said that illegal gambling is already occurring in Hawaii and sending revenue offshore. She focused on responsible gambling measures, such as time and deposit limits, implemented by the companies she represents.
The committee also considered HB 1945, which would permit gambling on cruise ships in Hawaiian waters, including while docked, with a 20% tax on revenue. Many of the same concerns were raised, and the Department of Commerce and Consumer Affairs indicated it lacks the resources to regulate such activity. The committee deferred the bill without a vote.
Original article: https://www.yogonet.com/international/news/2026/02/17/117582-hawaii-house-committee-advances-online-sports-betting-bill-despite-heavy-opposition
