HB2570 would create a new chapter in the Hawaii Revised Statutes to legalize and regulate sports wagering in the state, to be administered by the Department of Business, Economic Development, and Tourism (DBEDT). The bill defines key terms such as sports wagering, wagering events, fantasy sports contests, operator and supplier licenses, and sets out the framework for online/mobile wagering only. It authorizes wagering on professional, collegiate, and amateur events, including e-sports and motor vehicle races, while excluding youth sports events and certain Hawaii collegiate events from wagering. The bill also expressly states that lawful sports wagering and fantasy sports contests are not gambling offenses under Hawaii law.
The measure establishes a licensing system for at least six sports wagering operators and sports wagering suppliers, with background checks, financial responsibility standards, house rules, geolocation and age-verification requirements, anti-money-laundering controls, and a statewide voluntary self-exclusion program. It prohibits in-person wagering kiosks and requires wagers to be placed through approved mobile applications or digital platforms. The bill also creates reporting, auditing, and enforcement powers for DBEDT, including civil fines for violations and criminal penalties for unlicensed sports wagering. It further amends the state’s gambling definitions in chapter 712 and expands criminal history record check authority in chapter 846 to cover sports wagering applicants and licensees.
The bill would also amend the general excise tax law to impose a 15 percent tax on adjusted gross sports wagering receipts. The revenue would be allocated among the University of Hawaii at Manoa athletic department, a Native Hawaiian organization, the Hawaii Employees Lifeline Program, the general fund, the problem gambling prevention and treatment special fund, and education-related programs. A new special fund administered by the Department of Health would support problem gambling counseling, prevention, treatment, and responsible gaming education. In addition, the bill authorizes sports wagering agreements with other jurisdictions and allows the department to accept wagers from outside Hawaii if permitted by law.
The general sentiment reflected in the bill’s movement is mixed and strongly divided. The bill advanced on second reading, but the vote was notably split, with only three members voting aye with reservations and twenty voting no, indicating substantial resistance even as the measure remained alive. The “with reservations” votes suggest some support for the concept of regulated sports wagering, but also concern about the bill’s details or broader policy implications. No committee transcript was provided, so the available record shows division primarily through the vote rather than through stated testimony.
The main points of contention appear to be the legalization of sports betting itself, the use of an online-only model, and the bill’s tax and revenue allocation structure. Opponents may be concerned about gambling expansion, consumer harm, and the social costs addressed only partly through the problem gambling fund and self-exclusion provisions. Supporters likely view the bill as a way to regulate an existing or emerging market, generate tax revenue, and provide consumer protections. The inclusion of specific revenue shares for UH athletics, a Native Hawaiian organization, and labor-related programs may also be a point of debate, as may the bill’s broad exemption of licensed sports wagering from existing gambling prohibitions.
HB2570 would add a new sports wagering regulatory chapter to Hawaii law, amend the state’s gambling definitions to exclude authorized sports wagering and fantasy sports, and authorize DBEDT to license and oversee operators and suppliers. It would also amend the general excise tax statute to impose a 15 percent tax on adjusted gross sports wagering receipts and create a dedicated problem gambling prevention and treatment special fund administered by the Department of Health. The bill would affect licensed gaming entities, suppliers, patrons, state tax administration, and criminal enforcement by establishing a legal framework for online sports betting and related compliance obligations.
The available voting history suggests the bill is controversial and polarizing. It passed second reading only with a large number of no votes and just three aye-with-reservations votes, indicating limited consensus and significant skepticism among members. The reservations imply some willingness to consider regulated sports wagering, but the overall vote pattern points to substantial concern about legalization, regulation, and the policy tradeoffs involved.
The central contention is whether Hawaii should legalize sports wagering at all, and if so, whether the proposed framework is sufficiently protective of the public. Critics are likely focused on gambling expansion, addiction risks, and the adequacy of enforcement and consumer safeguards, while supporters emphasize regulation, tax revenue, and the ability to channel activity into a legal market. Additional debate may center on the bill’s online-only structure, the minimum number of operator licenses, the 15 percent tax rate, and the earmarked revenue distribution to UH athletics, a Native Hawaiian organization, labor-related programs, education, and problem gambling services.