Hawaii Sports Betting Guide

Hawaii Legal Sports Betting Overview

Hawaii Sports Betting Summary

Hawaii has a long history of aversion to gambling, stretching back nearly two centuries. Along with Utah, Hawaii is one of only two US states prohibiting all forms of gambling. It is also one of the four US states to ban playing Daily Fantasy Sports (DFS) games.

It’s unlikely that the appeal of gambling tax revenues will be enough for lawmakers to allow the Aloha State to join the list of legal betting states. Six sports betting bills have been submitted since the Professional and Amateur Sports Protection Act of 1992 (PASPA) was struck down in 2018, either to legalize wagering or to fund studies into feasibility. However, every bill has died in a committee.

While there is opposition to all forms of gambling, there has been some enthusiasm for online betting to be made legal. HB 736 included the legalization of online sports betting, but despite being deferred to the 2022 legislative session for further consideration, it was ultimately abandoned in favor of new legislation.

Read our full guide to sports betting in Hawaii to discover the latest sports betting news and the outlook on wagering in HI.

Hawaii Online Sportsbooks

If Hawaii legalizes gambling, it seems that only online wagering would be pushed through. In the most current bills put forward, HB 1815 and HB 736, specific measures to only legalize online betting were included. However, neither passed a committee.

Other state gambling laws in the US require sportsbooks to partner with a local gambling location or sports venue to launch legally. The most likely sportsbook to launch in Hawaii is DraftKings, which has supported lawmakers trying to legalize online sports wagering in the state.

Latest Hawaii Sports Betting Updates

Timeline for Sports Betting in Hawaii

• May 5, 2022: HB 1962 fails to pass before the end of the Hawaii legislative session.

• February 9, 2022: Representative Daniel Holt, with support from Rep. Sean Quinlan, introduces HB 1962, which would appropriate funds for studying the feasibility of sports betting in the Aloha state. It passes its second reading and is referred to the Judiciary & Hawaiian Affairs (JHA) and Consumer Protection & Commerce (CPC) committees.

• January 26, 2022: Rep. Chris Todd introduces HB 1973, which specifically aims to legalize sports betting in the Aloha State. It never leaves the Economic Development (ECD), Finance (FIN), CPC and JHA committees despite passing its first reading.

• January 24, 2022: Rep. Quinlan introduces HB 1962 to the house, a bill that would appropriate funds for a study on the feasibility of gambling in Hawaii, including sports betting. The bill fails to gain much support.

• January 25, 2022: Rep. Todd decides not to reintroduce HB 736 in favor of a new bill.

• January 24, 2022: Rep. John Mizuno introduces HB 1815, a bill explicitly legalizing online sports betting in Hawaii. The bill aims to convince Hawaii lawmakers to compromise on sports betting by offering a 55% state tax rate on sports betting winnings. However, the bill fails to gain traction and dies in a committee.

• February 10, 2021: The Hawaii Congress ECD Committee recommends that HB 736 be deferred and carried over to the 2022 legislative session following discussions with local stakeholders and DraftKings.

• January 25, 2021: Senator Donna Kim introduces SB 595 to launch a task force to examine the possibility of sports betting in Hawaii. The bill is referred to a committee where it dies at the end of the 2021 legislative session.

• January 25, 2021: Rep. Todd’s HB 736, which would immediately launch a pilot sports betting program until 2025 in Hawaii, is met with some initial enthusiasm. It passes its first reading.

• January 23, 2019: Rep. Todd introduces HB 1107 to create a Hawaii Sports Wagering Corporation to explore the possibility of its legalization in the state. The bill makes it to a committee but doesn’t get any support.

• May 14, 2018: The US Supreme Court strikes down the Professional and Amateur Sports Protection Act of 1992 (PASPA). This gives each state the right to legalize sports betting.

• January 27, 2016: Hawaii Attorney General Doug Chin rules out the legalization of DFS in the Aloha State, stating, “The technology may have changed, but the vice has not.”

Hawaii Sports Betting Background

Opposition to gambling in Hawaii stretches back hundreds of years to when Dutch missionaries considered problem gambling to be destroying the then-independent island nation. A bill legalizing gambling preceded the overthrowing of Hawaiian Queen Lili‘uokalani in 1893, but the new regime reinstated the statewide ban on gambling almost immediately.

Since the US Supreme Court struck down PASPA, there have been several attempts to legalize sports betting or at least fund studies into the feasibility of wagering. However, none of these measures have gathered much support and Hawaii has maintained its opposition to gambling.

Future of Hawaii Sports Betting

The Hawaiian Democrat party, which controls 94% of seats in the Hawaiian State Congress and, as of August 2022, leads polls by fifty points to win the governor's office again, is split on the issue of sports betting.

Governor David Ige currently leads a majority of lawmakers against any form of gambling legalization. He spoke out against “the social cost of gambling” in 2020 when discussing a proposal for a casino to be built in Kapolei. While Gov. Ige will soon step down as he has reached his term limit, his likely replacement, Josh Green, shares his anti-gambling views.

However, the whole party is not against sports betting, with Rep. Todd and Rep. Quinlan introducing multiple sports betting bills and research requests over the years. HB 736 from Rep. Todd was supported by DraftKings, with the company sending a representative to the state capital to give a speech in favor of sports betting.

The end of the 2022 legislative session saw all sports betting bills killed in committees. The earliest sports betting could be legalized is in 2023 when the new legislative session opens. However, this remains unlikely given the majority of lawmakers’ stance on wagering.

Hawaii Sports Betting Locations

Casinos are currently illegal in Hawaii, so there are no locations you can visit to place sports bets. However, some lawmakers have tried to legalize casinos on Hawaii’s islands.

HB 1820 was introduced in January 2022 by Rep. Mizuno to build a casino in Waikiki. In addition, Rep. Holt introduced HB 1962 to fund a study about building a casino in the state.

However, both bills were completely unsuccessful, dying without a reading. It seems unlikely that Hawaiian residents will see a casino built in their state anytime soon.

Hawaii Lottery Locations

Eight states in the US, including Hawaii, don’t have a state lottery. However, a lottery is one of the most supported types of gambling in the Aloha State, with two bills lodged to launch a lottery in 2022. HB 2040 and HB 2485 both proposed creating a lottery, but they were referred to committees and didn’t pass.

Off-Track and Stadium Betting Locations

There are no horse racing tracks in Hawaii, and horse racing betting is illegal. Considering the only significant sports venues in the state are for college teams, it is unlikely that retail sportsbooks will launch at stadiums, even if sports betting is legalized.

Hawaii Responsible Gambling Resources

• National Council of Problem Gambling Hawaii – Offers a 24/7 helpline and live chat for problem gamblers. It also connects players with local problem gambling support resources. (800) 522-4700

• Gamblers Anonymous – Runs anonymous meetings where people suffering from problem gambling can share their experiences. It also offers a helpline, a 20-question screening guide, and a full recovery program. (855) 222-5542

• GamTalk – A national 24/7 moderated peer support forum, allowing problem gamblers to chat and receive help online.

With all forms of gambling illegal in Hawaii, there aren’t any official problem gambling prevention or support measures. However, national organizations like the National Council of Problem Gambling, and Gamblers Anonymous, operate in Hawaii.

Teams to Bet on in Hawaii

• Pro Sports

Because Hawaii has such a small population and the high operating costs of traveling distances to the US, there are no professional major league sports franchises in the state.

California is the closest US state to HI and has a strong cultural influence on the state. Most Hawaii sports fans choose to support major league franchises from the Golden State.

• Minor League Sports

There are currently no minor league teams in Hawaii due to the 2,500-mile distance from any opponents. In addition, Hawaii is split between several islands, making big turnouts for games challenging.

Until 1987, the Hawaii Islanders played minor league baseball in the Triple-A Pacific Coast League, winning seven division and two league titles. The team was affiliated with various MLB franchises, including the Los Angeles Angels, San Diego Padres, and Washington Senators.

• College Sports

Hawaii Rainbow Warriors: As the state's only NCAA Division I level college athletic program, the University of Hawaii Rainbow Warriors is the biggest sports team in Hawaii. The football program is based at the 50,000-seater Aloha Stadium and has produced players such as Jesse Sapolu, Adrian Klemm, and Mark Tuine, who have all moved from the Warriors to the NFL and won more than three Super Bowls each. The baseball program finished runner-up in the 1980 College World Series, losing out to the Arizona Wildcats.

• Women’s Sports

There are no professional or minor league women’s teams in Hawaii. However, the University of Hawaii supports many women’s varsity teams that locals support. This includes the women’s basketball team, which made it to the round of 32 of the NCAA Tournament in 1990. The team also appeared in the 2022 competition.

• Market Coverage

It’s hard to compare Hawaii with nearby states as its closest neighbor, Alaska, is 1,573 miles away. However, a look at West Coast states with sports betting shows what Hawaii residents are missing.

Washington and Oregon have sportsbooks providing markets on dozens of sports. Every betting site covers the NFL, NBA, NHL, and MLB, but you’ll also find niche sports markets like NASCAR and MMA.

• Competitive Odds & Prices

Some of the top sportsbooks in the US would look to launch in Hawaii if sports betting was legalized, with DraftKings already showing an interest. DraftKings offers generous betting odds on a wide range of sports to compete with other betting sites in dozens of states. In particular, DraftKings has excellent point spread odds on MLB games as an official betting partner of the sports league.

• Gambling Revenue

One of the main appeals of legalizing sports betting is the tax revenue the Hawaii government could collect. New Hampshire (1.4 million) has a similar population size to Hawaii (1.5 million) and launched sports betting in December 2019 with a 6.75% tax rate. As of June 2022, New Hampshire has handled $1,448,949,479 in bets, with sportsbooks taking a revenue of $95,824,351. The state has benefitted from $44,223,202 in taxes.

While New Hampshire residents may have more interest in sports betting due to the popular nearby New England sports franchises, Hawaii would also benefit from the nine million visitors it receives annually. With this influx of visitors, Hawaii could handle more bets than New Hampshire. In addition, HB 1815 suggested a 55% on sports betting revenue, meaning they could proportionally bring in significantly more taxes than NH.

• Betting Taxes

Every sports bettor in the US must declare all gambling winnings to the IRS, no matter the state you are playing in. You must also complete a W-2G form if you win more than $600 and include your gambling winnings in your state income tax, which ranges from 1.40% to 11.00% in Hawaii. Sportsbooks can hold up to 25% of your profits for tax purposes.

All sportsbooks need to pay a 0.25% excise tax on a monthly betting handle to follow the Internal Revenue Code. The Code also requires sportsbooks to pay $50 for every employee involved in taking bets.

Who Oversees Sports Betting in Hawaii?

Hawaii currently has no state regulator for gambling, so any sports betting legislation that passes would have to create one.

HB 1107 included the creation of the Hawaii Sports Wagering Corporation, which would oversee sports betting in the state. Any regulator would create the licensing process to ensure every sportsbook was safe and fair.