The slow but steady march of sports betting legalization in the United States could be about to claim one of its biggest prizes yet. The latest—and perhaps most promising—development is Hawaii’s advancement of House Bill 1308 (HB1308).
In April, the Aloha State Senate passed legislation that would legalize sports wagering and fantasy sports contests. The bill now edges closer to becoming law, and while there’s still a long road ahead, its progress signals that Hawaii could be the next US state to open up a lucrative market.
Why Hawaii is a prime opportunity
From a pure market size perspective, Hawaii’s population of 1.4 million might not put it in the same bracket as more lucrative states like California or Texas, but it’s the symbolic significance that makes this so compelling.
The island state stands out as one of only two US states (alongside Utah) that currently prohibit all forms of gambling. This makes Hawaii a ‘blank slate’ for operators, with no existing market saturation and a population eager for regulated betting options.
Also, if Hawaii breaks its hardline stance against all forms of gambling, it could trigger a domino effect in those other previously closed-off states. It may also invite fresh investment from major operators keen to expand their US footprint—especially with the lack of competition.
What’s inside the betting bill?
HB1308 marks a significant step forward for sports betting advocates in Hawaii. The bill sets out a comprehensive regulatory framework for online sports betting and fantasy sports, including:
- Licensing requirements for operators and suppliers
- A 10% tax rate on sports wagering revenues
- A $250,000 operator licensing fee
- Regulatory oversight by the Department of Law Enforcement, including criminal history checks
- Allocation of tax revenue to a Problem Gambling Prevention and Treatment Special Fund, administered by the Department of Health
If the Hawaii House agrees to the Senate’s amendments, the bill will head to Governor Josh Green for final approval. Should it become law, the state could see its first legal online sports bets placed as soon as July 1, 2025.
Timing is everything
Momentum is crucial to this story. The US sports betting market is maturing, but growth hasn’t stalled—in fact, quite the opposite.
Take New York, for example, a market that’s now over three years old. Stats from Gambling Insider show that the Empire State’s online sports betting revenue rose 4.8% year-on-year in April 2025, reaching $192.7m, with a 9.6% increase in betting handle to over $2.15bn.
That kind of sustained performance shows that sports betting isn’t a flash in the pan. It’s a long-term revenue driver.
For states like Hawaii still weighing up the pros and cons, the numbers from New York, New Jersey, and others paint a persuasive picture of what’s possible with the right regulatory and tax frameworks in place.
What’s next for operators?
For operators eyeing expansion, Hawaii represents the most promising new market on the horizon. The state’s move to legalize sports betting could set a precedent for other holdout states, while offering first-mover advantages to those prepared to navigate its regulatory requirements.
Key takeaways for operators
- Hawaii’s HB1308 could open a new, untapped market by mid-2025
- The regulatory framework is clear, with defined taxes and licensing fees
- New York’s ongoing growth highlights the long-term revenue potential in regulated states
As the US sports betting map continues to fill in, Hawaii’s emergence could be a major breakthrough for the iGaming industry. As one of the last holdouts, any move toward legalization will be closely watched, not only by operators but also by other state legislatures.
And with mature markets like New York still delivering year-on-year growth, the message is clear: sports betting in the US still has room to expand — both in scale and geography.
For now, all eyes are on Honolulu.
Stay tuned to Receptional for the latest insights on emerging US markets and expert strategies for operators looking to capitalize.
