Bill to Legalize Online Sports Betting Introduced in Hawaii

The Aloha State is taking another swing at sports betting in 2026.

Hawaii Senator Dru Kanuha officially introduced the chamber’s first bill of the year on January 30. The bill, SB 3303, proposed to create a legal online sports betting platform with at least six operators. 

The state’s Department of Business, Economic Development, and Tourism would regulate the market, which would charge a $500,000 licensing fee and a 15% tax rate on sportsbook revenue.

If passed, the state would be required to launch the new market within 180 days.

Hawaii Sports Betting Fell Short in 2025

While Hawaii has long opposed sports betting, that nearly changed in 2025, when the House and Senate both passed sports betting bills, but with several key differences. Representatives from both legislative bodies began negotiations in committee but ran out of time to reach a deal.

Hawaii Governor Josh Green said he would sign a bill during the last legislative session. He said the final bill would need to have the proper safeguards in place for problem gambling, but otherwise would approve legalizing the industry.

New Bill Could Jump-Start Negotiations

Last year’s sports betting bills failed due to the operating costs of establishing a legal market.

Hawaii’s Senate sports betting bill called for a 10% tax rate and a $250,000 licensing fee for operators. They believed this would lower costs for bettors, creating a more competitive and ultimately more profitable market. 

The House wanted to ensure operators paid their fair share when bringing sports betting to the islands. If a legal market brings addiction and other gambling-related issues, operators should be paying the state to help support programs aimed at helping. They rejected the Senate’s bill largely because they felt the tax and licensing costs were far too low.

Sen. Kanuha’s new bill aims to jump-start negotiations in 2025. It includes a 15% tax rate and a $500,000 licensing fee. If that can keep support in the Senate, it should have a far better chance in the House.

Lawmakers Look to Keep Predictions Out of Hawaii

While sports betting remains illegal in the Aloha State, sports prediction markets are offering an alternative. These platforms are not considered gambling, but they allow customers to trade “contracts” on events such as moneylines, spreads, totals, parlays, and more. The industry is federally regulated, meaning it is not subject to state taxes or regulations.

The Hawaii House is considering a bill to ban this form of trading in sports events and other markets. It would allow the state to force out prediction operators, but there is no guarantee it would work. Several states have taken similar actions, but the lack of regulatory authority has forced them into costly, drawn-out lawsuits.