The long-running fight over whether Hawaii should legalize gambling officially moved to center stage at the Capitol this week, as a new state tourism and gaming working group kicked off a months-long review that could reshape the debate. From the opening gavel, the room broke into two clear camps: law enforcement and prosecutors warning about crime and addiction, and developers and industry voices talking up jobs and tax revenue.

The Tourism and Gaming Working Group held its first meeting Thursday in a Capitol conference room, a session described by officials as a fact-finding mission rather than a vote to change any laws, according to Hawaii News Now. State investigators and police told members the islands still have dozens of illegal game rooms and warned that Hawaii’s underground gambling market may be worth hundreds of millions of dollars a year, testimony that set the tone for much of the discussion.

What The Panel Has Been Asked To Do

The working group was created under a legislative resolution that directs the Department of Business, Economic Development and Tourism to study how other states handle gaming, review past Hawaii proposals and build a comprehensive tourism and gambling policy framework. That assignment covers potential revenue, regulation, enforcement and support for people struggling with problem gambling. The resolution also instructs the panel to look specifically at possible gaming at the New Aloha Stadium Entertainment District and on vessels operating in Hawaii’s exclusive economic zone, and to report its findings to lawmakers on the schedule laid out in the official text of SCR 121, as posted by the Hawaii State Legislature.

Law Enforcement Sounds The Alarm

Police and state officials used their time to stress that gambling is already here, just not regulated or taxed. Honolulu police told the group they have identified roughly 50 game rooms on Oahu, and the state Department of Law Enforcement estimated that between $700 million and $800 million flows through Hawaii’s unregulated gaming market each year, according to reporting from Hawaii News Now. Honolulu Prosecutor Steve Alm cautioned that mobile sports betting in particular could become “a casino in the privacy of their living room,” and urged lawmakers to weigh social costs as carefully as any promised revenue.

Developers And Industry Push The Economic Pitch

On the other side, backers including Aloha Hālawa District developers and some labor groups argued that a careful, methodical review is exactly what the state should be doing. Committee records show Stanford Carr of Aloha Hālawa District Partners, along with representatives for Boyd Gaming, testified that a structured, research-driven process is the right next step for Hawaii, according to transcripts posted by Civil Beat.

Where The Bills Stand Now

Even as the working group digs in, related legislation at the Capitol is moving in fits and starts. A House bill filed this month would prohibit any casino or gambling enterprise on state lands within the Aloha Stadium redevelopment and would bar University of Hawaiʻi teams from competing in venues that are physically integrated with gambling operators, according to legislative records. In contrast, a Senate casino bill that would have allowed 20-year licenses at the Aloha Stadium district and the Hawaiʻi Convention Center was deferred by committees earlier in 2025, per state bill tracking. For full text and committee actions, see entries for HB 1527 and SB 893 on LegiScan and LegiScan.

What To Watch Next

The working group is expected to keep gathering testimony and data that could shape future bills and policy choices, with its findings and any draft recommendations heading back to lawmakers under the timetable in the resolution. Local reporting and committee records indicate the issue remains politically sensitive across the islands, with sharp divides between public safety officials and developers and gaming interests, a split first highlighted by the Honolulu Star-Advertiser and further reflected in legislative transcripts.

For now, the group’s work will be watched closely by law enforcement, social service providers and community organizations that have urged lawmakers to keep potential harms front and center alongside any projected revenue.