Hawaii Gaming Study Bill Advances, Tax Money Could Help Build Sports Stadium

Posted on: April 2, 2025, 11:55h. 

Last updated on: April 3, 2025, 07:46h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • Hawaii lawmakers are reviewing a bill that would prompt a study on gaming
  • Hawaii has no legal forms of gambling
  • Gaming taxes could help fund the construction of a sports stadium at the University of Hawaii

Legislation in Hawaii to initiate a study on how legalized gambling would impact the island state continues to progress in the Honolulu capital.

Hawaii gaming study bill stadium
A rendering shows an afternoon game at the Aloha Stadium, which is set to become the new home of the University of Hawaii Rainbow Warriors in 2028. The facility in Honolulu could cost up to $400 million. The liberalization of gaming is being considered by lawmakers as a possible funding source. (Image: New Aloha Stadium Entertainment District)

Gov. Josh Green (D) remains impartial on the issue of ending Hawaii’s prohibition of all forms of gambling, but he does agree that allowing certain forms of gambling would generate new tax revenue that could help build affordable housing units and possibly assist in the funding of a new football stadium at the University of Hawaii.

Senate Bill 891 would establish a “Gaming Working Group” within Hawaii’s Department of Business, Economic Development, and Tourism. The panel would be tasked with reporting to the State Legislature how gaming activities might support the department’s efforts to strengthen Hawaii’s economy.

SB891 cleared the Senate in early March with almost unanimous support. It’s since made progress in the House of Representatives, gaining backing in the Economic Development and Technology Committee and Tourism Committee. 

Stadium Project

The Hawaii government has allocated funding for a new football stadium at the University of Hawaii. The project is to cost more than $400 million, but Green thinks a budget of $800 million would allow for a modern sports complex.

We have the $400 million. We really would like $800 million. That’s why people are talking about gambling, which I’m neutral on, but it’s an option. It would generate revenue for our state.”

The Gaming Working Group would consist of “one individual representing Native Hawaiian culture,” one person “with social services experience dealing with behavioral addictions,” and representatives from the Department of Business, Economic Development, and Tourism, Department of Law Enforcement, and Department of Taxation.

If SB891 is enacted, the group will develop a comprehensive tourism gaming policy framework, including how an allotment of gaming taxes for the Aloha Stadium Entertainment District might look.

Hawaii’s Vegas Connection

Though the Gaming Working Group bill is finding favor in the Hawaii Legislature, the lawmaking body has refused to pass gaming legislation for decades. An effort earlier this year to legalize sports betting cleared the House but slowed in the Senate. A bill to bring casinos to the islands also failed.

Lawmakers have varying reasons for opposing gambling, but most often say Hawaiians are prone to addiction, and legal gambling would only worsen behavioral problems.

Lawmakers and casinos in Nevada are just fine with Hawaii maintaining its gaming ban. Las Vegas is a major tourist destination for Hawaiians, with Sin City commonly called Hawaii’s “Ninth Island.”

The California Hotel Casino — The Cal to regulars — played a central role in the Hawaii-to-Las Vegas pipeline. Built and opened in 1975 by Sam Boyd, The Cal, contrary to its name, features Hawaiian design elements. Boyd implemented the aesthetic after the downtown Las Vegas property struggled in its early years.

William Boyd, Sam’s son, wrote in his 2008 book about The Cal’s history that the casino was initially envisioned to target gamblers from California.

“We were struggling. One day my dad said to me, ‘You know, we’re going to need a niche market, and that’s going to be Hawaii,'” Boyd wrote.