Hawaii’s ongoing dance with the expansion of casino gaming took a dramatic turn last week. On Thursday, February 13, Senate Bill 893 SD1, a proposal meant to bring locally-regulated casinos to the islands, met its match when the Senate Committee on Commerce and Consumer Protection (CPN) and the Economic Development and Technology (EDT) committee deferred it, effectively killing its progress for now.
Why Did Hawaii Lawmakers Defer SB 893?
In a week that began with industry news of public hearings and razor-thin committee votes, the dream of a Hawaiian casino industry is now on ice.
Senator Dru Kanuha’s ambitious plan, which originally aimed to license casino operators for 20 years in the New Aloha Stadium Entertainment District and at the Hawaii Convention Center, has stumbled against a wall of concerns.
List of US States that have introduced bills to legalize online poker and casino this month👇
— Anuj Arora (@anuj2212) January 23, 2025
Maryland
Virginia (postponed until 2026)
Indiana
Wyoming
Massachusetts
New York
Hawaii
This is New York's fourth or fifth consecutive year attempt https://t.co/kMH57FqFbm
15% Tax, No Party
Chief among them is the question of whether taxing residents, through a proposed 15% wagering tax on gross receipts, undermines Hawaii’s cultural values and burdens islanders rather than tourists.
Some lawmakers, including Senator Lynn DeCoite, have been vocal in their belief that Hawaii “isn’t a place” where taxing locals to boost revenues is the right path. Critics of the bill also echoed worries over social costs, cultural integrity, and a general skepticism toward gambling’s effects on the community.
The Bill That Could Have Changed Everything
Before this setback, SB 893 SD1 sought to break a longstanding state tradition. Currently, Hawaii and Utah remain the only two states in America that lack any type of local gambling regulations. The bill proposed:
- Strict Licensing: A 20-year window for casino operators in two carefully monitored locations.
- Hawaii Gaming Control Commission: An oversight body to handle everything from licenses to day-to-day regulation.
- Wagering Tax: A 15% charge on gross receipts intended to generate revenue for state programs.
- Social Responsibility Measures: A dedicated State Gaming Fund and a Compulsive Gambler Program.
Supporters argued that casinos could boost tourism, pad government coffers, and even help maintain facilities like the planned Aloha Stadium renovation. Boyd Gaming, an industry heavyweight, offered its blessing, while the Hawaii Tourism Authority wanted a seat at the table to ensure the broader tourism landscape wasn’t jeopardized.
Yet others, like the Nation of Hawaii, balked at a plan. The organization argues that this proposalwas pushed forward without proper consultation.
Hawaii and Utah are the only two states without Casino’s!! Wow! @VitalVegas
— StockStalker 🇺🇸 (@kadie1414) December 4, 2024
Looking Ahead
Is the conversation over? Currently, lawmakers in Hawaii are discussing several proposals regarding sports betting, online casinos, and even sweepstakes. For example, last week HB 1308 cleared a major hurdle after the House Judiciary and Hawaiian Affairs Committee passed the bill 6-4.
The proposal aims to expand and regulate online sports betting under the Department of Business, Economic Development, and Tourism (DBEDT)
For the moment, though, SB 893 SD1’s deferral means no fresh spin of the roulette wheel in paradise. Whether future proposals prove compelling enough to shift that narrative remains to be seen in the Aloha State.
While Hawaii’s lawmakers debate the future of local gaming, residents can steer clear of questionable operators. Rate Sportsbooks spotlights the best offshore sportsbooks all of which offer integrated online casino options, so you can place your bets with peace of mind.
