Hawaii’s latest gambling expansion bill includes a proposal to launch a state-backed sweepstakes casino with “Hawaii-related” prizes. The unusual proposal would make Hawaii the first state to embrace sweepstakes gaming in that way. Hawaii’s sweeps gaming site would be available nationally except where prohibited by other states’ laws, and the prizes would be geared toward promoting tourism and Hawaiian businesses.
The sweeps concept is one item in a House gambling bill that would also create a lottery, which would be allowed to operate online poker and casino gaming through a single commercial partner. SB1507, introduced by Senate President Sen. Ronald D. Kouchi, will establish the Hawaii Lottery and Gaming Corporation (HLGC), a public entity with the mandate to generate revenue by conducting and regulating gambling. Kouchi’s effort is supported by a companion bill in the House, introduced by Representative Nadine Nakamura.
HLGC would have a seven-member board working to establish Hawaii’s gambling policies and regulations. The board would also select a gaming provider, which would operate games of chance and skill, including an online lottery, casino games, and poker (with the possibility of multi-state poker). However, SB1507 does not allow sports betting.
If passed, SB1507 will come into effect on July 1. Once all seven HLGC board members are appointed, they will have 180 days to implement gaming rules and start the process of finding a gaming partner, meaning possible gambling expansion could launch in early 2026.
HLGC would attract tourists with sweeps casino prizes
Per HB1434, the purpose of HLGC is to benefit the state and local communities. One approach includes leveraging its gaming platform to attract tourists by offering prizes to those outside the state. The relevant passage states that HLGC would:
Utilize the broad reach of its gaming platform to offer legally compliant free-play games and sweepstakes with Hawaii-related prizes to individuals outside of Hawaii, for the purpose of attracting tourists and providing free exposure for Hawaii and Hawaii businesses to domestic and overseas markets.
While the text doesn’t specify what “Hawaii-related” prizes are, the casino would likely differ from the cash prizes offered by most sweepstakes casinos. The implication seems to be that users would be able to redeem their promotional tokens for things like trips and hotel stays, or perhaps merchandise made by Hawaiian businesses.
Sweepstakes sites have grown in popularity in recent years because they’re available in most states, including those without gambling options, like Hawaii. That’s possible because sweepstakes casinos operate under federal sweepstakes laws instead of state gambling laws.
Players cannot use cash to play. Instead, they use two virtual currencies: standard and premium coins. The standard coins, often called Gold Coins, are always free but don’t have monetary value. Players can use them to play for fun. Meanwhile, the premium coins, usually called Sweeps Coins or Sweepstakes Coins, are redeemable for cash prizes. Users cannot buy premium coins but can obtain them via bonuses or as a gift when they purchase standard coins.
Multiple gambling proposals active in Hawaii legislature
The same day Sen. Kouchi introduced SB1507 in the House, Rep. Nakamura filed a companion bill in the Senate, HB1434. This proposal is not Kouchi’s first attempt to legalize some form of gambling in Hawaii. Last year, he sponsored a bill to legalize sports betting and online poker, but that effort did not move past the initial committees. In addition to leaving out sports betting, a change in this year’s effort centers around attracting tourists to the Aloha State rather than fighting illegal gambling.
While Kouchi and Nakamura’s proposals exclude Hawaii sports betting, other efforts are underway in that regard. SB1569 and its House counterpart HB1308 allow the Department of Business, Economic Development, and Tourism to regulate sports betting. According to the bills, sports wagering will not be considered a game of chance or gambling.
Meanwhile, SB1572 establishes the Hawaii State Sports Wagering Commission within the Department of Business, Economic Development, and Tourism, as well as licensing requirements for operators.
