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State of Play’s TL;DR
- Hawaii’s Tourism and Gaming Working Group is looking into how lottery and online gaming systems work in different states.
- Officials zeroed in on Delaware’s state-run system as a possible model for the Aloha State.
Hawaii is still in the study phase, but its Tourism and Gaming Working Group is now digging into how lottery, online gaming, and sports betting systems are structured elsewhere.
Delaware’s state-run model was a central case study, giving policymakers a real-world example of how lottery and broader gaming can operate under one umbrella.
The group spent its latest hearing examining how other jurisdictions regulate lotteries, online gambling, and sports betting, with presentations from North American Association of State and Provincial Lotteries Executive Director Andrew White, Delaware Lottery Director Helene Keeley, and consultant Brianne Doura-Schawohl.
The core message from the hearing was straightforward: Before Hawaii chooses a model, it first needs to decide what it wants a lottery or gaming system to accomplish.
Delaware’s model gave Hawaii a live example
White told the group that lotteries are often created around a defined public purpose.
“The need has really driven starting the lottery or voting it in.”
He outlined how lottery proceeds in different states can support programs ranging from education and local governments to senior services, economic development, environmental initiatives, property-tax relief, and veterans programs.
Keeley then walked the group through Delaware’s system. The Delaware Lottery began in 1975 with traditional products and later expanded into video lottery terminals, table games, online casinos, online lottery, and online sports betting.
In Delaware, the lottery acts as both operator and regulator.
According to Keeley, Delaware’s video lottery and online casino products generate the most revenue. She said the lottery is self-funded, adding, “We pay our expenses. We fund ourselves first. We get no general fund contributions at all.” After covering operations and other obligations required by law, net proceeds go to the General Fund.
Keeley said Delaware’s traditional lottery products delivered $60 million in net contributions to the General Fund after expenses. She also said the state uses a single online gaming provider, which allows Delaware to control the provider’s advertising budget and media and require changes to objectionable language.
Online gaming and responsible-play questions remain central
The hearing did not signal an imminent Hawaii launch. Instead, it highlighted the decisions the state would still need to make, including what games would be permitted, whether online casino gaming and sports betting would sit under the same system, how many operators would be allowed, and who would regulate them.
Responsible gambling was a major part of the discussion. Keeley said Delaware added funding for problem gambling education when online gaming was introduced and said responsible gaming was built into each expansion step:
“Every single piece of legislation made sure that responsible gaming was part of the equation.”
She also said Delaware has not seen a dramatic increase in problem gambling under its model.
Doura-Schawohl addressed illegal online gambling and younger consumers’ views of sports betting, saying a significant portion of Gen Z sees betting as an investment vehicle.
“It’s entertainment. It’s not investing.”
For now, Hawaii’s process remains exploratory. The hearing showed that if the state moves forward, Delaware’s integrated lottery and online gaming framework is one of the clearest templates under review.
Based on reporting by Hawaii Sports Radio Network.
