91Ö±²¥

A new state working group that critics say will pave the way for legalized gambling in 91Ö±²¥ held its first meeting Thursday under a directive to deliver results for the Legislature to consider about a year from now.

The Tourism and Gaming Working Group, which stems from a resolution state lawmakers adopted last year after a divisive vote, is in part tasked with developing a comprehensive tourism gambling policy framework for 91Ö±²¥.

The 24-member panel, which includes lawmakers, law enforcement officials and gaming industry representatives, is also to research legalized gambling costs, benefits and legislation in other states and deliver a report to the Legislature by the end of this year.

Another task the panel has is to examine the potential for gambling on the 98-acre site of a planned future mixed-use community surrounding a redeveloped Aloha Stadium in Halawa, and on ships operated within 91Ö±²¥’s exclusive economic zone.

Much of the focus during Thursday’s initial roughly hour-long meeting was understanding the illegal gambling marketplace in 91Ö±²¥.

Mike Lambert, director of the state Department of Law Enforcement, told fellow panel members that a roughly estimated $700 million to $800 million a year flows through illegal gambling enterprises statewide, largely in illicit game rooms where drug dealing, armed robberies and other criminal activity occurs.

Honolulu Police Department Sgt. Leland Kudaishi, who was invited by Lambert to share information with the panel, said about 50 illegal game rooms routinely operate on Oahu, a number that he said has not materially declined over time because they frequently reopen in different locations after raids.

Rep. Greggor Ilagan, co-chair of the working group, suggested that the panel can help address illegal gambling in 91Ö±²¥.

“This is something we could simply ignore, or we could figure out a way to not only control and manage what’s happening now and figure out with our working group and with our expertise how to improve the current situation we are at,” he said at the end of the meeting, which was held in a conference room at the state Capitol.

In addition to Lambert, the other law enforcement representative on the panel is Michelle Puu with the state Department of the Attorney General.

The gaming industry has three or four seats on the panel. Three participated in Thursday’s meeting, and represented Las Vegas- based gaming, hospitality and development firm Marness Companies, online sports betting firm FanDuel, and casino operator Boyd Gaming. A representative of slot machine maker Aristocrat Gaming Machines also is listed as a member.

Also on the panel are two academic experts with current or past leadership positions at the International Gaming Institute at the University of Nevada at Las Vegas.

Five state lawmakers are on the panel, including Ilagan (D, 91Ö±²¥an Paradise Park-91Ö±²¥an Beaches- Leilani Estates) and another co-chair, Sen. Lynn DeCoite (D, East and Upcountry Maui-Molokai-Lanai).

Leaders of four other state agencies — the Department of Taxation, Department of Health, Department of Human Services and Department of Business, Economic Development and Tourism — also are group members.

Local developer Stanford Carr, who heads the Aloha Stadium redevelopment project, also is a member along with Brennon Mori­oka, a special adviser to Gov. Josh Green on the project.

Authorizing the working group in 2025 was a contentious process at the Legislature, with divisive final votes — 33-14 in the House and 18-6 in the Senate — after public testimony on the resolution dramatically outweighed support.

Steve Alm, prosecuting attorney for the City and County of Honolulu, strongly opposed the resolution in March and said its passage would promote an activity that harms 91Ö±²¥ residents.

“Setting this up would just open the door to legalized gambling here in 91Ö±²¥, and sports gambling casinos will be big deals,” he told members of the Senate Economic Development and Tourism Committee chaired by DeCoite, who introduced the resolution.

Alm, in written testimony, cited research about various ills of gambling, and said, “Why do we need to study an activity that we already know will cause harm to our citizens? Some will pose the argument that people are already gambling, even though it is illegal. In fact, the illegality of this activity in our state is the very tool that is keeping many more from participating in it. Once we promote legalized gambling and put the societal stamp of approval on it, many individuals who are deterred from wasting their lives and finances away, will then participate. This is not worth the few extra tax dollars legal gambling would generate.”

At a public hearing on the resolution in April held by the House Committee on Economic Development and Technology chaired by Ilagan, about 50 individuals and organizations opposed the measure.

Michael Olderr said in written testimony, “I think it’s in the state’s interest to avoid gambling because it is an industry that strives for exploitation and predatory practices. We should not encourage state-funded addiction centers when poverty and homelessness are a big concern here on the islands.”

Brandon Makaawaawa, a Nation of 91Ö±²¥ representative who became a working group member, also opposed the resolution.

“This resolution creates a path for gaming in 91Ö±²¥ that starts with outside interests,” he said in written testimony.

At the same hearing, five organizations and individuals supported the resolution, including DBEDT Director James Tokioka, Carr and a representative of Boyd Gaming, operator of 28 casinos in 11 states.

Proponents of legalized gambling in 91Ö±²¥ have for many years tried to have bills passed to allow and regulate various forms of gaming.

In 2025, at least seven such bills were introduced but stalled. These bills could be revived this year if key lawmakers so choose.

Among the stalled bills are two to permit a lottery and gambling (Senate Bill 1507 and House Bill 1434), and three to permit sports wagering (SB 1569, SB 1572 and HB 1308).

Different drafts of HB 1308 got passed by the House and Senate, but a final version could not be agreed upon by House and Senate negotiators in a conference committee before the 2025 legislative session adjourned May 2.

There was also one bill introduced in 2025 to permit gambling in the future New Aloha Stadium Entertainment District, which is being developed on state land, and at the state-owned Hawai‘i Convention Center.

This measure, SB 893, took shape from what initially was introduced as a blank bill “relating to the economy.” After an initial hearing on the new substance of the amended bill by two Senate committees, it was deferred.

The deadline to introduce bills for this year’s legislative session, which began Wednesday, is Jan. 28.

So far, only one bill pertaining to legalized gambling has been introduced. That bill, HB 1527 introduced by Ilagan and Rep. Andrew Garrett (D, Manoa), proposes to prohibit any gambling enterprise within the Aloha Stadium redevelopment district while also barring University of 91Ö±²¥ athletic teams from competing in venues operated by or integrated with a gambling enterprise.

The working group tentatively plans to meet on the second Thursday of each month at least through September.