The House on Tuesday took the unprecedented step of passing a controversial measure to legalize online sports betting.

Gambling on sports in Hawaiʻi is legal, but there is no legal avenue for placing bets with a sportsbook or online. To date, 38 states have legalized some form of online sports betting, which often involves placing bets on apps through a smartphone.

The 35-to-15 vote on House Bill 1308 marked the furthest that a gambling proposal has made it in the Legislature in at least the last decade.

The bill would legalize online sports betting apps in the state and allow for up to four state-licensed operators.

The ease with which people with gambling problems could access betting applications drew opposition from some lawmakers.

Rep. Andrew Garrett, who represents Mānoa, said he had a friend with a gambling addiction who fell into financial ruin because of it. “I wouldn’t wish that pain on anyone,” he said.

Proponents argued that gambling addiction exists in Hawaiʻi even without a legal form of gambling. HB 1308 would allocate a portion of tax revenues to treat gambling addiction.

Hawaii’s current laws “have not stopped thousands of residents from participating in online sports betting through offshore and illegal platforms,” said Rep. Dan Holt, who represents Honolulu. “The reality is that sports wagering is already happening.”

Experts have warned that sports betting has not created a windfall in states that have passed similar measures.

Representatives of the sports betting industry previously told lawmakers that Hawaiʻi could see about $10 million to $20 million in additional annual tax revenue. “Do we need that money to fix our roads?” said Rep. David Alcos, who represents ʻEwa. “Maybe taking care of families is a better choice.”

The state Department of Commerce and Consumer Affairs would be tasked with regulating the industry. A previous draft of the bill directed $200,000 from licensing fees to the department, but Director Nadine Ando told lawmakers that wouldn’t be enough to pay for a new gambling enforcement division.

Ando noted that other states that regulate sports betting often already had gaming commissions to oversee all gambling in the state. Some have up to 400 full-time employees. “It’s monumental, what would need to be done in order to set this up to regulate this industry,” Ando told the House Finance Committee on Feb. 24.

The measure that passed the House on Tuesday leaves the amount that each operator would need to pay in fees blank.

Like the House, the Senate is also exploring legalizing gambling. While it shelved a bill earlier this year to allow for casinos on Oʻahu, on Tuesday senators gave the nod to establishing a tourism and gaming working group to study how gambling might create jobs, investment and tax revenue for the state.

The group would be housed within the Department of Business, Economic Development and Tourism and could include representatives of Boyd Gaming Corp., DraftKings Inc. and MGM Resorts International. A report from the working group would be submitted just before the 2026 legislative session.