Exploring the Tourism Economy in Hawaii
Understand how Hawaii's tourism thrives without the presence of casinos.
- Tourism Development
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Explore the historical and cultural reasons behind Hawaii's ban on casinos and other forms of gambling.
No, there are currently no casinos in Hawaii. Hawaii remains one of only two states in the United States that has not legalized any form of gambling, making it uniquely restrictive in its gaming policies. This prohibition extends far beyond just casinos—Hawaii bans lotteries, horse racing, sports betting, bingo, and even slot machines for display or collection purposes. The state's strict stance on gambling has persisted for over a century, creating a distinctive legal landscape that sets Hawaii apart from virtually every other state in the nation.
Hawaii's prohibition on gambling has deep historical roots. When Hawaii was established as a U.S. territory in 1898, numerous gambling bans were already in place, including the Sixth Law of the Code of 1827, the "Blue Laws" of 1841, and the Penal Code of 1850. These restrictions have remained remarkably consistent throughout Hawaii's history, creating a legal framework that explicitly prohibits virtually all forms of gaming activity within state waters and on state land.
The current legal structure makes it clear that violating Hawaii's gambling laws can result in imprisonment. Notably, this prohibition applies to everyone—locals, homeowners, tourists, and visitors alike. Even the operation of private slot machines for personal collection is illegal in Hawaii.
Hawaii's ban on casinos stems from a combination of cultural, historical, and policy considerations. The state has maintained this position despite significant economic pressure and recurring legislative attempts to overturn it. Several factors contribute to the continued prohibition:
Hawaii's decision to prohibit casinos affects local and state economies differently from other U.S. regions.
The state strategically focuses on tourism through its natural and cultural offerings rather than gambling.

Despite Hawaii's strict prohibition, the legislature regularly considers bills to legalize gambling. Every year, lawmakers in Hawaii pitch gambling bills with the hope of generating revenue without raising taxes. These proposals have included bills to establish casinos in Waikiki and to authorize shipboard gambling.
A notable example is the proposal from the state Department of Hawaiian Home Lands to build a resort-casino in Kapolei. This bill was intended to generate funds specifically to construct more homes for Native Hawaiians and address the substantial waitlist of Native Hawaiians seeking housing. However, despite recurring legislative efforts, no casino legalization has succeeded, and Hawaii maintains its historical prohibition.
While Hawaii itself prohibits gambling, residents and visitors have found legal ways to gamble outside state jurisdiction. Hawaii's gambling laws explicitly extend to prohibiting cruise ship gambling on Hawaiian waters. However, once cruise ships leave Hawaiian territorial waters, passengers can legally gamble on board. This creates a loophole where visitors can engage in gaming activities without violating state law.
For residents and visitors seeking casino experiences, Las Vegas remains only a short plane ride away. This proximity to one of the world's premier gaming destinations serves as both an alternative outlet and a source of economic concern for Hawaii policymakers. The state Department of Hawaiian Home Lands has raised concerns about the substantial amount of money that leaves Hawaii annually for gambling purposes on the mainland, representing lost economic opportunity for the islands.
Hawaii's situation differs significantly from other states that have embraced gambling through Native American gaming operations. Unlike most states, Hawaii has no federally recognized Native American Indian reservations, which has traditionally been the pathway for tribal gaming under the Indian Gaming Regulatory Act. However, this distinction does not necessarily protect Hawaii from potential gaming complications if gambling were legalized, as the Indian Gaming Regulatory Act's application to Hawaiian sovereignty issues remains ambiguous in several legal respects.
The absence of casino gambling in Hawaii has profound economic implications. Hawaii's economy is heavily dependent on tourism, and policymakers have made a deliberate choice to develop this sector around experiences other than gaming. Some economists and business leaders argue that legalizing casinos could generate much-needed tax revenue and create employment opportunities. Conversely, others contend that Hawaii's tourism appeal—its natural landscapes, cultural heritage, and relaxation opportunities—does not require gaming as an attraction.
The contrast with Nevada is instructive. Nevada legalized gambling in the 1930s and sports betting in 1949, establishing Las Vegas as the nation's gaming capital. However, Nevada's regulatory structure, established under Governor Grant Sawyer in the 1950s with independent agencies like the Gaming Control Board, took years to implement effectively and involved dealing with organized crime elements. Hawaii's policymakers have historically chosen to avoid these complications.
Hawaii remains firmly committed to its prohibition on casino gambling, making it one of only two states without legalized gaming of any kind. The question of whether there is a casino in Hawaii has a definitive answer: there is not, and significant legal, cultural, and political barriers make future casinos unlikely in the near term. While the legislature considers legalization bills annually, the unique complications presented by Native Hawaiian gaming rights under federal law, combined with Hawaii's historical commitment to alternative economic development strategies, have kept casinos off the islands for over a century.
Residents and visitors seeking casino experiences must either travel to the mainland—particularly Las Vegas—or gamble on cruise ships in international waters. For now, Hawaii's status as a casino-free state remains unchanged, reflecting a deliberate policy choice that distinguishes the islands from virtually every other jurisdiction in the United States.
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