Hawaii opens debate and studies the legalization of online gambling
The state, one of the few in the U.S. without any form of legal gambling, has formed a panel of 24 experts to develop a comprehensive policy. Authorities estimate that the current ban has not prevented hundreds of millions of dollars from flowing to underground operators.
Hawaii, historically one of the most restrictive territories in the United States regarding betting, has taken a significant step toward regulation. The newly created Tourism and Gaming Task Force has formally begun its investigations to assess the feasibility of legalizing certain forms of gambling in the archipelago.
The panel, composed of 24 members — including legislators, law enforcement officials, academics, and industry representatives — has the mission to analyze the impact of a possible market opening and send concrete recommendations to the legislature before the end of the year.
An $800 million illegal market
The main argument for reviewing the ban is the magnitude of underground gambling. During the group’s first session, Mike Lambert, director of the State Department of Law Enforcement, revealed alarming figures: it is estimated that between $700 and $800 million circulate annually through illegal businesses in the state.
Lambert emphasized that these operations not only evade taxes, but physical gaming rooms (known as game rooms) are frequently linked to serious crimes such as drug trafficking, weapons possession, and robberies.
Greggor Ilagan, representative and co-chair of the task force, advocated a pragmatic approach: "We have a current ban, and yet illegal gambling continues to happen. It’s something we could simply ignore, or we could find a way to control and manage what is already occurring."
Background and political resistance
The debate is not new. Last year, Hawaii came close to legalizing sports betting with a bill backed by Governor Josh Green, who saw in the tax revenues (estimated at about $13 million annually) a funding source for the Aloha Stadium project. However, the initiative failed due to disagreements over tax rates and fund allocation.
Opposition remains strong. Steve Alm, Honolulu’s prosecutor, warned that the creation of the task force is a "dangerous step." According to Alm, the current illegality acts as a social deterrent, and legalizing the activity would only increase participation by people who currently abstain, without tax revenues compensating for the social harm.
Industry pressure
While the legislative debate advances, the digital market continues to pressure. Although "sweepstakes casino" platforms like Fliff and Chumba restricted their operations in Hawaii last year due to regulatory fears, the legal vacuum continues to be occupied by offshore operators.
The Sports Betting Alliance has been categorical on this: "Hawaii cannot afford to keep ignoring the illegal market. A regulated market would provide fundamental safeguards and generate millions in revenue. It’s time to do it right."
Tags: United States, USA, Hawaii, Hawaii online betting regulation, Hawaii online betting license, Sports Betting Alliance