House committee adopts working group to study legalized gaming after heated testimony

The House Committee on Economic Development voted to pass SCR 121 with an HD1 amendment on April 17, 2025, in Conference Room 430. Chair Iligan, chair of the committee, called for adoption and members voted to advance the resolution to form a working group to study legalized gaming in Hawaii.

The working group will research gaming programs in other states and develop a tourism and gaming policy framework covering revenue, jobs, capital investment, regulation and enforcement, and social programs for prevention, counseling and treatment. The HD1 amendment added departments and research bodies to the membership, removed three named gaming corporations from the resolution text, and directed certified copies be sent to new members.

Supporters urged study and fact-gathering. A representative of the Department of Business, Economic Development & Tourism (DBEDT) said the purpose is to inform legislators and communities: "I don't think we can make a bad decision with too much information," the DBEDT witness said. Labor and construction representatives argued a regulated industry could capture money now leaving the state and create jobs; Cliff Laboy of the Iron Workers Stabilization Fund said the group supports the measure to bring "fresh money into the state." Cody Sula of the Iron Workers Stabilization Fund told the committee the working group should include labor voices because legalized gaming could affect working-class jobs.

Opponents warned of social harms, especially from online sports betting. A prosecutor offering opposition pointed to cases elsewhere and said, "Research shows that 96 percent of online bettors lose money." Several community and faith leaders warned that gambling disproportionately harms lower-income people and Native Hawaiians and raised public-safety concerns after incidents linked to illegal gaming rooms. Christina Everett of Project Name My Hawaii argued, "How can you regulate addiction? You cannot." Brandon Makawava, vice president of the Nation of Hawaii, urged that Native Hawaiian communities lead early discussions: "Let us have this conversation as an ohana first."

The HD1 amendment, as described on the record, (1) broadened the research purpose to include revenue, administrative cost, prevention and treatment programs, and enforcement; (2) directed study of a range of gaming activities including potential activity at the Nualoa Stadium Entertainment District and onboard vessels operating within Hawaii's exclusive economic zone (200 nautical miles); (3) added the director of the Department of Health, the director of the Department of Human Services, and the executive director of the University of Hawai‘i Economic Research Organization (UHERO) or their designees as requested participants; (4) allowed agency directors to designate representatives; and (5) removed three gaming corporations named in an earlier draft while preserving the option for industry participation in working-group meetings.

Committee members said the working group is intended to gather data the Legislature lacked: tax-department estimates and academic analysis were both cited during testimony as inconsistent and incomplete. Representative Tien, speaking on the floor, said cruise-ship and onboard gaming were among the types of activity the panel should examine. Representative Holt and others said they would vote to form the study group to get more concrete numbers on jobs and revenue claims.

The resolution was adopted by the committee as amended. The committee chair directed the report to reflect testimony warning that online sports betting carries significant social risk and that designees be allowed for legislative members named in the HD1.

The working group will now be constituted consistent with the HD1 language and is expected to produce findings that could inform future legislation.