Hawaii Bill Proposes Robust Online Sports Betting Market

Sports betting is back in the Aloha State’s senate in 2026.

Senator Dru Kanuha introduced SB 3303 on January 30 to establish an online sports betting market in Hawaii. The bill calls on the state’s Department of Business, Economic Development, and Tourism to regulate the market. At least six operating licenses would be issued, including a 15% tax rate on sportsbooks.

The bill would ban betting on youth sports and any college events involving Hawaiian teams. That includes all player props involving athletes from the state’s schools. 

While the state has rejected sports betting proposals for years, that almost changed last year. The state’s Senate and House both passed sports betting bills, but were unable to reconcile their differences during a conference committee. 

Two issues that contributed to the failure of the previous bill were the tax rate and licensing fees for operators. The Senate had proposed a 10% tax rate and a $250,000 licensing fee, but House lawmakers believed both were too low. Sen. Kanuha’s new bill raised both, proposing a 15% tax rate and a $500,000 licensing fee.

Governor Josh Green said he would not veto a sports betting bill during the last session and would likely support this year’s effort. 

Concerns Over Prediction Markets Grow

One contributing factor in Hawaii’s shift on sports betting is the emergence of prediction markets. These platforms offer an alternative to sports betting but are not considered gambling under US law. This means operators can offer markets across all 50 states, including sports.

With the number of prediction market operators exploding over the last year, states like Hawaii are seeing unregulated sports betting entering their borders. This is leading sports betting opponents to soften their stance, believing a ban on sportsbooks would ultimately harm the state and its residents.

The Hawaii House is currently considering HB 2198, which would ban securities trading on several topics, including sports. However, a ban would likely lead to an expensive and contentious legal battle with the prediction industry, which would argue that the state lacks the authority to enact it.