House committee advances bill to legalize online sports wagering after hours of debate

The House Committee on Economic Development, Technology (joined by Labor) voted to move HB2570, a bill to legalize and regulate online sports wagering in Hawaii, after a full day of testimony that sharply divided state agencies, law‑enforcement, public‑health officials and industry groups.

Deputy Attorney General Jordan Ching told the committee the Attorney General—: the department strongly opposes this measure, primarily due to the well‑studied public health and safety concerns associated with legalized gambling, and said the bill as written offers limited regulatory and enforcement tools.

Honolulu prosecutor Steve Ulm said the social cost would fall disproportionately on lower‑income residents and cited research showing most online bettors lose money over time. "Sports betting affects lower income folks more than upper income folks," Ulm said, warning that problem gamblers account for a large share of revenue in other states.

Public‑health testimony emphasized measurable harms. Jim Dillon of the Department of Health summarized that gambling disorder is a recognized addictive condition and said the department expects gambling disorders to increase if wagering is legalized, though the department "takes no position" on bills but offered mitigation considerations that would be necessary if the Legislature acts.

Opponents from community groups and nonprofit coalitions urged delay. Les Brunell, national director of Stop Predatory Gambling, warned that "1 in 100 bettors make money over the long term," arguing legalization normalizes harmful products and enables industry tactics that target vulnerable users.

Industry representatives and trade groups offered a counterargument: legal regulated operators can identify and intervene with at‑risk customers and provide consumer protections unavailable on offshore platforms. Kathleen Owen, counsel for the Sports Betting Alliance, said legal operators deploy tools such as deposit limits, pop‑up reality checks and account monitoring and contended that "online sports betting is already happening in Hawaii" in an unregulated market. She noted working‑group engagement with state agencies and argued a regulated market would bring oversight and revenue back to Hawaii.

Law‑enforcement testimony was mixed on enforcement benefits. Honolulu Police Department representatives said illegal game rooms and offshore activity present serious problems that regulation may not eliminate, while HPD also said regulation could create new enforcement needs. Committee members repeatedly asked for revenue estimates, enforcement cost projections, and whether a regulated market would meaningfully reduce illegal wagering; the Department of Taxation indicated revenue modeling was underway.

Committee members also raised a range of technical and policy questions — including consumer protections, algorithms and advertising practices, licensing standards, how to tax wagers and whether the state should employ a GET (General Excise Tax) approach. Several members expressed reservations; others said the bill would allow the Legislature to shape consumer protections through subsequent committees. The committee ultimately adopted the chairrecommendation to move HB2570 forward, with several members recording "no" votes or reservations.

The next phases will focus on regulatory detail, revenue estimates and cross‑committee review; the bill will proceed to other committees for additional hearings and drafting of enforcement provisions.

Votes and outcomes cited during the hearing were procedural and reflect the committeerecommendation to advance the measure.