Hawaii’s latest plan to rescue its struggling tourism economy sounds like a gamble. Instead of fixating on what visitors care about — lower taxes, fees, and accommodation costs, plus reasonable vacation rental options, and better travel experiences — lawmakers are now betting on online sports gambling to help fill the financial hole left by (precarious) tourism.
The question for visitors is simple: Will this gamble really pay off for Hawaii travel — or is it just another distraction from the real problems facing island visitors today?
What the new gambling proposal would do.
House Bill 1308 has just advanced through Hawaii’s Senate and now heads back to the House for final approval. If Governor Josh Green signs it into law, which we’re betting he will, online sports betting could launch by later this year.
At least four operators would be allowed to offer betting apps to adults in Hawaii. A 10% tax on betting revenue and steep licensing fees would be used to fund responsible gambling programs.
Some supporters claim Hawaii could earn tens of millions annually. But history from other states suggests caution. Even New York and California — with far larger populations and established gambling cultures — have struggled to hit their early revenue projections from similar forays.
Visitors probably won’t notice — or care.
This is not Las Vegas. There is no casino gambling being planned for Waikiki or betting lounges at resorts. This is strictly online betting via smartphones or computers.
Visitors to Hawaii, especially those here for beaches and relaxation, may never even realize gambling has been legalized.
Most states — more than 30 at this point — already offer sports betting. Travelers who want to place bets are likely already doing so before they ever set foot in Hawaii.
As Beat of Hawaii has covered before, Hawaii’s challenge is not attracting gamblers. It’s addressing the visitor experience — a reality this bill does little to touch. It’s about the need for turning the tide on the decline of return visitors more than anything.
Josh Green’s vision for sports tourism.
Governor Josh Green’s interest in sports tourism is not new. Last year, he traveled to Nevada to study how professional sports could help shape Hawaii’s tourism future.
At the time, Green floated ideas like bringing major sporting events to Hawaii or investing in new infrastructure to draw higher-value visitors. It was part of a bigger strategy to pivot from mass tourism towards some form of more sustainable, upscale visitor economy.
But online sports betting feels like a smaller, more controversial step in that direction. Unlike sports tourism, which could bring visitors together for shared events, this is solitary, phone-based gambling. The connection to improving Hawaii travel issues is, at best, indirect.
The real tourism problems Hawaii isn’t addressing.
Even if online gambling brings in revenue, it does nothing to fix the real issues Hawaii visitors and the state’s economy are already facing.
Flights to Hawaii have been and will continue to be cut, especially from West Coast markets. Airfares remain stubbornly some of the highest in the country again this summer, with recent data showing they often rival or exceed fares to Europe.
Hotels continue to push stratospheric prices higher, often still paired with resort fees, parking fees, and surcharges that add up quickly for visitors. And on top of all those comes 18% accommodation tax, which the state would like to increase yet further.
Vacation rentals — once a crucial and intrinsic part of affordable Hawaii travel — are vanishing under new laws, particularly on Maui, where thousands of units still face the uncertainty of removal.
Visitor frustration is continuing to grow. Many longtime Hawaii travelers say they feel both less welcome and less able to afford a trip to the islands than ever before.
Online sports betting won’t lower airfares. It won’t reduce accommodation costs or taxes. And it won’t improve visitor sentiment.
Will it even happen?
Governor Green has expressed openness to legalized gambling if done carefully, but he has at the same time not fully committed to signing HB 1308.
If the bill becomes law, Hawaii’s Department of Law Enforcement — a newly created agency with little gambling experience — will be tasked with setting up the regulatory framework.
Operators would be required to launch by the end of 2025. But Hawaii’s slow-moving bureaucracy raises questions about whether that timeline is even realistic.
And if betting does launch on schedule, its direct impact on visitors is likely to be minimal — especially given the existing availability of betting in other states.
What does this mean for Hawaii travel?
Hawaii continues searching for ways to replace missing tourism dollars — and gambling is just the latest in a series of experiments. Taxes, resort fees, increased accommodation costs, state park fees, and now sports betting all reflect the same reality: Hawaii is trying to fund its future without continuing to resolve its core tourism issues.
As Beat of Hawaii reader Mike from Oregon recently commented about rising visitor fees: “We come to Hawaii for the beauty, the people, and the experience. Not to feel like walking wallets.”
That sentiment may only grow stronger if visitors feel the state is focused more on their wallets than their travel experience.
The bottom line.
For now, sports betting is continuing to generate headline buzz. But for those booking flights, searching for reasonable accommodations, and hoping to feel welcomed again in the islands, the real fixes Hawaii needs remain elusive.
We welcome your input. Mahalo!
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Hawaii will only get fixed from within. The rich aren’t going to help the small business owner. You probably won’t see Oprah at the flea market or International market buying anything. Adding more gimmicks is not going to bail you out. Start with the next election. Vote out every incumbent. Give the other party a chance to fix everything. They can’t do any worse. Maybe you can hire someone to audit your officials. My guess is there is more corruption than you realize. Good luck.
I disagree with your statement that it couldn’t get any worse …are you missing the chaos we have right now on the national scene?
What’s the deal. If the state can’t tax the tourist and locals into prosperity then what now gambling. Vegas wasn’t built with locals all winning huge jackpots so what’s in it for Hawaii residents other than a more empty wallet. IMO just another example of how Hawaii only wants the ultra rich individuals to visit and live on the islands.
On line betting will not cure anything
Bring flight costs, hotel add-ons down. Give our guests more Aloha not dig into a wallet already tapped just to get and be here. Dumb idea
that is so contrary to what we should aim for …please don’t add another vice to Hawaii So, dancing to live music at West Maui resorts is not allowed, but now you have to watch people checking their phones to see if a sports team won or not? Who is that helping the community or brining people together? Another distraction from the real problem …I guess the Liquor License Department wins again, since people will have another drink when they loose or win …if you want to collect taxes from gambling, you might as well bring the lottery to Hawaii. At least there is a chance they can win enough to buy a property in Hawaii!
Can’t stop thinking of the child that was asked to not play cards in a Kauai restaurant because the owner could loose his liquor license and get fined. How is sports gambling on a cellphone for an adult any different? Isn’t gambling gambling whether it is a sport or not? I think they should block all the websites of these sports betting sites through their IP address and cellphone towers if no gambling on Hawaii is the law. IMO hypocritical.
I live in Oklahoma. Years ago we were told that offering liquor by the drink everywhere would solve all our financial problems. It didn’t. Then it was parimutuel betting. That didn’t fix anything either. Then they told us that if we just okayed a state lottery all the profits would go to education and all their problems would be solved. In fact, schools got less than 3% of the profits. Then it was “medical” marijuana. All that brought us was higher crime and an influx of Chinese gangsters buying (through a local front men) all the grow farms and further crime. I’m not sure what vice we’re going to legalize next in the name of solving our financial problems. Be careful.
This proposal is so laughable and dishonest. Yes, allow betting companies to prey on Hawaii residents so they can throw away their disposable income from the few jobs that remain after tourism and short term rental business are killed and just see what they have left in their bank accounts to even approach affording housing at all after online sports betting ducks them dry. Hard to make up such idiocy running rife among Hawaii legislators and our clueless governor.
I don’t understand the connection to “tourism.” The latest version of the bill, SD2, says nothing at all about “tourism” or “visitors.”
The word “tax,” however, appears 92 times. The word “fee” appears 17 times. This bill is about taxes and fees. It’s a bill to enable gambling and impose taxes on gambling operators. That’s it.
LOL.. he’s putting the burden of picking up lost revenues from GET/TAT taxes on residents!
We already have online betting. It’s called the stock market.
Keep going on taxing the tourist, and you will not have to worry because soon you will not have any.
You don’t understand. That is what we want. No tourists, like during the pandemic. It was a blessing.
This is just a continuing episode in the “Throw everything at the wall desperately hoping something sticks” strategy that has been employed by the state government for years now. They propose everything except for the real fixes that would actually help the average people of the state but would hurt their moneymen and cronies. Tammany Hall with palm trees…
Best Regards
If successful full blown casinos will not be far behind.
Then look for Hawaii to blame tourist for Hawaiians gambling problems demanding that visitors either voluntary or donate money to pay for their gambling addiction programs.
Or better yet a new tourist or non-resident tax.
Our state has online sports betting and it’s a terrible nuisance. Commercials all the time (I know we don’t come to Hawaii to watch TV, but we want to check news and weather) and it’s really over-emphasized. In your face all the time.
That’s not why people come to Hawaii !!
Please don’t approve it.