Hawaii Holds Off On Gambling Expansion Amid Legislative Priorities

Ian Valentino
Published: Wed Feb 25 2026
Reviewed By Paul Skidmore
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Key Points
  • Gambling proposals stall in 2026 session.
  • Lawmakers focus on tax and budget measures.
  • Lottery, casino, and cruise‑ship gaming bills fail to advance.

Hawaii officials appear set to maintain the state’s longstanding prohibition on gambling for at least another year, as multiple bills aimed at expanding gaming options have stalled in the 2026 legislative session. Proposals involving casinos, a state lottery, cruise‑ship gambling, and prediction markets all failed to advance past early committee deadlines this year.

Lawmakers did move numerous fiscal and policy measures forward, but none of the primary gambling bills cleared key hurdles in either chamber. This effectively preserves Hawaii’s position as one of only two U.S. states without legal casinos, a lottery, or regulated sports wagering.

Legislative priorities shift toward tax‑cut pauses and budget concerns

During the same period, bills backed by Gov. Josh Green—aimed at pausing five upcoming income‑tax cuts and authorizing withdrawals from the state’s Emergency and Budget Reserve Fund—advanced into major finance committees for further review. Lawmakers appear more focused on budget stabilization and fiscal policy than on entertainment or revenue diversification through gambling.

As a result, gambling‑related measures lacked traction. Proposals to allow gaming on cruise ships in state waters, authorize a single casino in the Stadium Development District, or create a limited pilot study for a lottery did not receive the necessary momentum for committee hearings or floor consideration.

Key bills that did not advance this year

Several pieces of legislation garnered attention early but failed to survive session deadlines. For instance, HB 2198—which targeted the regulation of prediction markets—also appears dead for the year after failing to progress through standard committee pathways. Earlier discussions around casino development or cruise‑ship gambling similarly collapsed, mirroring trends in other local reporting that highlighted stalled gambling measures in separate committees across the state Legislature.

This broader pattern illustrates the Legislature’s limited appetite for gambling expansion. While a sports‑wagering proposal narrowly passed one House committee earlier in the month, other paired or related bills were deferred, indicating no unified path toward legalization at this time.

Implications for residents, operators, and state revenue

The stalled bills mean residents seeking regulated gaming options must continue traveling out of state or using unregulated online platforms, which can raise consumer‑protection concerns. For operators, Hawaii remains effectively closed to new investment in gaming infrastructure or licensing efforts.

For state finances, lawmakers are prioritizing tax‑related decisions rather than pursuing new revenue streams tied to gambling. Although some policymakers have framed legalized gambling as a potential funding source for state programs, the current legislative environment suggests that such revenue opportunities will not materialize this session.

Outlook for future sessions

With adjournment scheduled for May 8, remaining fiscal bills may still advance, but meaningful progress on gambling legislation appears unlikely this year. Observers note that gambling expansion would require significant committee engagement and political alignment—conditions that are not present in the 2026 session.

Given Hawaii’s historically strict anti‑gambling stance and repeated deferrals of such bills in recent years, future proposals may encounter similar resistance unless legislative priorities or public sentiment shift more noticeably.

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