Hawaii’s Gambling Working Group Is Halfway Through Its Process — Here’s Where Legal Sports Betting Actually Stands

Hawaii and Utah remain the only two states in the country with virtually no legal gambling of any kind. That could change — but if you are watching Hawaii closely, it helps to understand exactly where the state is in its process right now. In January 2026, Hawaii established the Tourism and Gaming Working Group, a 24-member panel created through a 2024 legislative resolution. Its mission is to evaluate legalization of gambling and develop a comprehensive policy and impact framework, with findings due by the end of 2026 to inform the 2027 legislative session.

The group held its inaugural meeting on January 22, 2026, at the Capitol. Officials described it as a fact-finding session rather than any kind of vote or legislative action. The panel includes five state lawmakers, four state agency leaders, two academic experts, law enforcement officials, and representatives from major gaming companies. Three gaming industry representatives attended the first meeting: Las Vegas-based hospitality and gaming firm Marness Companies, sportsbook operator FanDuel, and casino operator Boyd Gaming.

What the Group Has Heard So Far

The working group’s early meetings surfaced the same tensions that have defined Hawaii’s gambling debate for years. Law enforcement officials painted a stark picture of the existing illegal market. Mike Lambert, director of the Hawaii Department of Law Enforcement, told the panel that an estimated $700 million to $800 million flows through illegal gambling operations in Hawaii each year. Honolulu police estimate roughly 50 illegal game rooms operate on Oahu alone at any given time, with those rooms repeatedly shut down only to reopen elsewhere. Lambert linked the illegal market directly to drug trafficking, robberies, and other criminal activity.

On the other side of the table, pro-legalization voices — including Rep. Greggor Ilagan — argued that regulation would help manage the black market and convert a significant portion of that illegal activity into taxable revenue. The Sports Betting Alliance, a lobbying organization, estimated that Hawaii residents wagered more than $680 million on illegal sports betting in 2025 alone. At the 15 percent tax rate proposed in the current online sports betting bill, HB 2570, that illegal volume would generate more than $102 million in annual tax revenue if redirected to legal channels.

HB 2570 itself advanced out of the Hawaii House Economic Development and Technology Committee on February 12, 2026, on a 4-3 vote — with the deciding vote cast with reservations. The bill also carries an amendment pushing its effective date to July 1, 3000, a legislative signal that there is still a great deal of debate ahead. In practice, the bill would launch sports betting within 180 days of being signed into law, not in the year 3000. The symbolic effective date is a way of keeping the conversation alive without committing to a timeline.

The Specific Proposal in HB 2570

For bettors trying to understand what a legal Hawaii market would actually look like, HB 2570 proposes an online-only framework. There are no land-based casinos in this bill. The plan calls for a minimum of six online sports betting licenses, regulated by the Department of Business, Economic Development and Tourism. The license fee is $500,000 for a five-year term. The tax rate on gross wagering revenue would be 15 percent, which is higher than the 10 percent rate in the previous year’s failed bill — a change that some legislators demanded before offering their support.

Wagering on college sports would be permitted, with one exception: Hawaii college teams would be excluded from betting markets, unless those teams are participating in tournament play such as the NCAA Tournament.

Who Is Opposing This and Why

The opposition is substantial and institutional. The Hawaii Attorney General’s office has opposed the bill. The Honolulu Police Department has testified against it. The Department of Commerce and Consumer Affairs has expressed concerns. Of the 52 public comments submitted to the House committee, 41 were opposed. Honolulu Prosecutor Steve Alm testified that research suggests policies legalizing online gambling lead to increased irresponsible gambling among lower-income individuals.

Native Hawaiian community groups have also voiced concerns about cultural and community impacts. This is not a fringe opposition — it includes the state’s top law enforcement officials and a significant share of the public.

What the Working Group Timeline Means

The Tourism and Gaming Working Group is scheduled to meet monthly through at least September 2026. Its task is to study gambling legalization broadly — including possible casino venues near the New Aloha Stadium development and the potential for cruise ship gambling in Hawaii’s economic zone — and report recommendations before the 2027 session begins.

For anyone tracking this through the lens of sports betting legalization timelines, the honest read is this: Hawaii is unlikely to have legal sports betting in 2026. The working group’s mandate is to inform the 2027 session. HB 2570 is still alive in the 2026 session and theoretically could pass, but it faces significant committee hurdles and strong opposition from state agencies.

The working group’s existence is meaningful because it represents the first structured, ongoing evaluation of gambling legalization Hawaii has ever undertaken. It signals legislative seriousness in a way that one-off bills have not. But the group itself is a tool for building the 2027 argument, not a guarantee of anything. Bettors in Hawaii remain in a waiting game, with 2027 as the more realistic target — assuming the working group’s findings are favorable and the political will holds.

If Hawaii does eventually legalize sports betting, the responsible gambling infrastructure being discussed now will matter. The state has consistently cited addiction and social harm concerns as primary objections, and any legal framework will likely include robust responsible gambling requirements as a condition of moving forward.