Hawaii and Utah are the only two US states with no legal gambling markets, and a decision by the Hawaii State Legislature to defer SB 893 looks set to continue this trend.

Hawaiian consumers are to miss out after the first licensed betting operations on the island were denied. The bill sought permission to provide 20-year licenses to be issued at the Hawaii Convention Center’s new Aloha Stadium project.

Online gambling expert Matt Bastock explains that even though Hawaii has no licensed land-based or online gambling markets, consumers can still explore a list of offshore casinos. Restrictions only apply to the operation of gambling sites and premises, meaning consumers are able to visit offshore betting sites without breaking laws.

While there are risks in accessing any site that operates in another country, the best offshore casinos operate under licenses granted by the jurisdictions in which they are located. These options promise consumers high levels of security, a large selection of games, and enticing bonuses.

Sites like this and the success of online sports betting across the US have seen more states enter into discussions about the potential for legislative change that would allow online casinos.

The decision to deny Senate Bill 893 will be a disappointment to casino operators and potential new customers, but there are fears it could also derail the planned development. Without backing from casino operators, there is set to be a shortfall of more than $550 million for the development, putting the entire plan in jeopardy.

If the bill got the green light, it would have seen the creation of the Hawaii Gaming Control Commission and gambling profits would have been taxed 15%, helping to generate significant income for the government.

Despite this disappointing news, there is still hope that Hawaii will pass Senate Bill 1569, allowing online sportsbooks. Online casino legislation is also proposed in Senate Bill 1507, allowing online casino games, slots, and lottery games.

The success of these bills remains to be seen, with many Hawaiians happy with how things are at the moment. However, there is a strong argument that the legalization of different betting markets allows governments to exercise better control. Illegal gambling operations provide little protection for customers, but licensed operations must adhere to strict regulatory frameworks.

Revenue streams generated by gambling in some US states have also been directed back into the community with many projects benefitting, including education, sports, and gambling awareness initiatives. Local infrastructure has also been a beneficiary of gambling revenue tax, helping to improve roads and public facilities.

The Senate Economic Development and Technology Committee cleared SB 1569 and it now moves on to the next stage. If either or both of the latest bills were to pass, it would likely take time to create a suitable regulatory framework and create a regulatory body to oversee operations.

Should the bills fail, it is likely that future proposals will look at the failings in these three attempts, amending future bills to address concerns.