Hawaii Reopens Gambling Debate as New State Working Group Gets Started

A new state working group tasked with studying the future of gambling in Hawaii held its first meeting this week, reopening a long-running and deeply divisive debate over whether the state should move toward legalization.

Working Group Puts Spotlight on Vast Hawaii Illegal Gambling Market

The Tourism and Gaming Working Group was created after lawmakers narrowly approved a resolution last year, despite strong public opposition. The 24-member panel includes state lawmakers, law enforcement officials, agency leaders, academics, and representatives from the gaming industry. It aims to do three things: study the costs and benefits of legalized gambling, examine models from other states, and deliver recommendations to the Legislature by the end of this year.

While the group is not charged with legalizing gambling outright, critics argue it effectively lays the groundwork for doing so.

Much of the discussion during the group’s first meeting focused on Hawaii’s existing illegal gambling market. Mike Lambert, director of the state Department of Law Enforcement, told the panel that an estimated $700 million to $800 million flows through illegal gambling operations statewide each year. Those activities are largely tied to illicit game rooms, which Lambert said are often linked to drug trafficking, robberies, and other criminal activity.

Honolulu Police Department officials estimate that roughly 50 illegal game rooms are operating on Oahu at any given time. According to law enforcement, those rooms are routinely shut down, only to reopen elsewhere.

Rep. Greggor Ilagan, a co-chair of the working group, framed the issue as a choice between ignoring the illegal market or trying to manage it more effectively. He suggested the panel could help identify ways to reduce harm and improve enforcement outcomes, regardless of whether gambling is ultimately legalized.

Stadium Gambling Ideas and Legalization Fears Fuel Renewed Opposition

The group will also study more controversial ideas, including the potential for gambling tied to the future New Aloha Stadium Entertainment District in Halawa. State officials involved in the stadium redevelopment have acknowledged that large stadium projects regularly require additional revenue streams to remain financially viable, though no specific proposal has been endorsed.

Opposition to the working group remains strong. Honolulu Prosecuting Attorney Steve Alm has repeatedly warned that creating a pathway toward legalized gambling would cause more harm than benefit. He argues that illegality itself acts as a deterrent, and that legalization would expand participation rather than eliminate illegal game rooms.

“When we promote legalized gambling and put the societal stamp of approval on it, many individuals who are currently deterred will then participate,” Alm has said.

Hawaii is one of only two states, along with Utah, with no legalized gambling of any kind. Lawmakers came close to approving sports betting last year, but negotiations collapsed over tax rates and regulatory details.

The working group is expected to meet monthly and present its findings ahead of the 2027 legislative session. Whether its work ultimately leads to legalization or reinforces Hawaii’s long-standing prohibition remains an open question. 

Alex Warren

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