Share 
State of Play
- Gambling legalization efforts in Hawaii have stalled while proposals to halt scheduled income tax cuts remain alive.
- The Legislature has pushed several fiscal measures into House and Senate money committees even as bills to permit casinos, a lottery, or cruise-ship gambling failed to gain traction this session.
Lawmakers in Honolulu moved dozens of bills through early deadlines, but gambling expansion measures appear dead for the 2026 session.
Multiple proposals to allow gaming on cruise ships, approve a single casino in the proposed Stadium Development District or elsewhere on Oahu, or even study a lottery did not clear critical hurdles.
HB 2198, targeting a new form of prediction markets also appears dead.
At the same time, bills from Gov. Josh Green to cancel the next five scheduled income tax cuts (HB 2306, SB 3125) and to allow withdrawals from the roughly $1.8 billion Emergency and Budget Reserve Fund (HB 2280, SB 3099) were referred to House Finance and Senate Ways and Means. Many surviving bills – from charter-only free lunches to pedestrian safety and limits on face coverings for ICE and other law enforcement – now await action in money committees before the May 8 adjournment.
Gambling bills probably dead this session
This session’s outcome keeps the status quo: Hawaii remains one of the few states without a legal casino, statewide lottery, or regulated commercial sports betting market. Practically, that means:
- Players: Residents seeking regulated options will still need to travel (to other states) or use out-of-state/online services, which can carry compliance and consumer-protection issues. No new, locally regulated gambling alternatives are likely this year.
- Operators: Casinos, lottery firms and sportsbook companies face a continued market exclusion, reducing near-term incentive to invest in Hawaii infrastructure or licensing efforts.
- State finances & enforcement: If the governor’s tax-cut pause advances, retained revenue could shift budget priorities, but without new gaming taxes, there’s no immediate new revenue stream tied to gambling to fund state programs. Regulators and potential licensees should monitor committee activity, but the legislative environment remains unfriendly to expansion this session.
The key timeline is the May 8 end of the legislative session. Bills routed to the House Finance and Senate Ways and Means committees – including the governor’s tax-cut suspension and rainy-day fund measures – may yet receive hearings and votes.
Gambling proposals currently face long odds and would need committee traction before any floor consideration.
Based on reporting by Dan Nakaso, Jaylynn Sasano and Andrew Gomes for Honolulu Star-Advertiser.
