HI SB768

Establishes the Hawaii Internet Lottery and Gaming Corporation as a public instrumentality to conduct regulated internet gambling operations for games of chance and skill (lottery, poker, casino games) for residents 18 years and older, excluding sports betting.

Creates a seven-member board of directors appointed by the governor (3 members), senate president (2 members), and house speaker (2 members), with a chief executive officer managing day-to-day operations and overseeing a private internet gaming provider.

Allocates net proceeds from internet gaming quarterly to a special fund distributed as: 35% public school capital improvements, 25% University of Hawaii capital improvements, 10% medical student scholarships/loan repayments for 10-year practice commitment, 10% family practice rural residency program, 10% watershed protection, 5% problem gambling programs, and 5% fund administration.

Requires competitive selection of internet gaming provider based on expertise in U.S. regulated gaming, technology, and suitability; prohibits providers that previously accepted U.S. wagers or operated in violation of law.

Implements consumer protections including age verification, geo-location restrictions (initially Hawaii residents only), self-exclusion options, deposit limits with 24-hour waiting periods for increases, and responsible gambling resources; exempts corporation from state taxation and chapter 91 regulatory requirements.