The American sports betting industry posted a record $13.71 billion in 2024 revenue, up from 2023’s record of $11.04 billion, according to the American Gaming Association’s annual report issued on March 11. Hawai‘i is one out of the two states where sports betting is illegal. This is because the state needs to preserve its cultural, family friendly and gambling free identity for tourism. Sports betting in Hawaii should be legalized because it can increase state revenue, reduce illegal gambling and monitor illegal activity easier to enforce game integrity. Sports betting would create way more fun for people in Hawai‘i who are confident in their sports knowledge and are willing to take a risk. While some people worry that sports betting could harm the integrity of sports or lead to gambling addiction, these risks can be reduced through monitored regulations and by using tax revenue to fund addiction treatment programs.
Sports betting should be legalized in Hawai‘i because it boosts revenue received from taxing it for the state as seen in other states in the U.S.. A state’s revenue is important because it funds public services such as education, healthcare, transportation and more. The National Conference of State Legislatures said, “For legislators, raising taxes on sports betting is twofold. It’s an opportunity to raise revenue at a time when budget pressures are growing, and an opportunity to ensure there are funds for problem gambling since many states earmark gaming dollars for treatment.” If sports betting is legalized, states and governments won’t have to give in to a budget that limits efficiency and growth. PubMed Central said, “States legalize sports betting in order to generate new tax revenues.” Other states are generating revenue ranging from around 1 million dollars in Wyoming to roughly 1 billion dollars in New York. The Tax Foundation said, “Establishing and taxing a legal sports betting market has been quite lucrative for states. Sports betting taxes brought in over $2.8 billion for states across the country.”
On the other hand, legalizing sports betting reduces illegal gambling. Legalized sports betting in Hawai‘i would enable monitored sports transactions on legal sites. Reporter, Blaze Lovell, from the Honolulu Civil Beat said, “So legalization may not eliminate illegal game rooms that proliferate in Hawaiʻi, but it could move gamblers away from unregulated betting websites.” With more monitoring and access to legal/regulated gambling, more people wouldn’t have to rely on dangerous and illegal gambling rooms to bet. Organized sites where sports betting is legalized in Hawai‘i would allow safe and clear transactions to reduce dangers of cheating in bets. Through that, there would also be a reduction in illegal activity.
Furthermore, illegal activity in sports betting can be spotted easier and quicker in a legal market. Illegal sports betting in Hawai‘i does not have officials that oversee transactions and activity. According to a survey taken in 2018 from the National Council on Problem Gambling, they said, “Nationwide, 73% of the respondents participated in “any past year gambling activity” compared to 57% of Hawaii respondents…” There are people in Hawaii who are gambling and sports betting illegally. If sports betting is legalized, people wouldn’t have to resort to illegal gambling, but instead take the safer path through legalized sites and places. The American Gaming Association (AGA) said, “In the illegal market – dominated by offshore betting websites and organized crime – there is no regulatory oversight and no protections for game integrity.” With more monitoring, more game integrity would be enforced because sports betting administrators can monitor transactions and sports bets easier and more accurately to check for suspicious activity. The AGA also said, “Legal sportsbook operators partner with sports leagues and independent game integrity monitors to identify suspicious betting behavior and flag it for regulators and law enforcement authorities.” This would result in a much safer approach for gamblers and sports integrity.
Tax revenue from legal sports betting can go towards treatment to gambling addiction. Within the aforementioned paragraphs, legalized sports betting in Hawai‘i would result in more tax revenue for the government. Despite an uprising of gambling addicts if sports betting was legalized, the money it generates can go to gambling addiction programs. The United States Census Bureau said, “Legalized sports betting is a growing business in many U.S. states and the tax revenue it generates funds various state resources from roads and highways to public education, law enforcement and gambling addiction programs.” The tax revenue gained from legalizing sports betting would benefit the greater good of our state’s education, public funds, safety and more.
The legalization of sports betting in Hawai‘i would result in an increase of government funds for the public, reduce illegal gambling and monitor illegal activity easier and more accurately to ensure good game integrity. While sports betting could harm the integrity of sports or lead to gambling addiction, these risks can be reduced through monitored sports betting sites and by using tax revenue to fund gambling addiction treatment programs. If sports betting in Hawai‘i is legalized, the greater good of Hawai‘i will benefit and thrive, ranging from public transportation, to a better way to gamble on your favorite sports team.