- The Hawaii Senate today approved a bill to legalize online sports betting
- The bill was previously approved by the House in March
- It will allow up to four online sports betting operators if signed into law
Mahalo! Hawaii is on the cusp of becoming the 40th state to legalize sports betting.
The Senate today approved Rep. Daniel Holt’s bill, HB 1308, to legalize Hawaii sports betting by a 15-10 vote. The amended bill will be sent back to the House for concurrence.
The House is expected to agree with the changes and Hawaii Gov. Josh Green (D) to then sign the legislation into law.
Hawaii’s Journey a Surprising One
Holt’s bill was the first sports betting bill to be approved by either the House or Senate. Despite its House approval, it was expected to receive heightened opposition in the Senate and an uphill battle towards legalization.
However, the bill quickly moved through the Senate and was eventually approved by the powerful Senate Ways and Means Committee last week, setting it up for full hearing and potential vote in the Senate.
While discussed in the Ways and Means Committee, members amended the bill to set the online sports betting tax rate at 10% of adjusted gross revenues. The committee also set license price tags at $250,000, with renewal fees also coming in at $250,000.
The bill will allow at least four online sports betting licenses to be awarded to operators in the state. It originally called for the Department of Commerce and Consumer Affairs to regulate Hawaii sports betting, but Director Nadine Ando expressed doubt that her department could do so during an earlier Senate committee meeting.
The Hawaii Department of Law Enforcement will regulate the new form of gaming if ultimately approved. Additionally, the enforcement of the general excise tax on sports betting will be administered by the Hawaii Department of Taxation.
It will also allow for the legalization of daily fantasy sports competitions in the state.
The amended tax rate, license fees, and regulatory department changes will have to be agreed upon by the House of Representative before being sent to Gov. Green for his signature.
If approved, the bill will go into effect on July 1, 2025.
Several Senators Speak Out on Legislation
While the bill did pass, several Senators did speak out against its approval.
“I’ve received email messages, as have you, from parents and ex-gamblers writing of the tragic loss of life and homes due to addiction of sports gambling from those who cannot keep their fingers from clicking to bet. It’s easy to say that sports betting is already happening, so why not legalize it? That works only when there are effective regulatory enforcement structures in place, but that’s not the case here,” Sen. Sharon Y. Moriwaki (D-12) said.
Sen. Lynn DeCoite (R-7) said the bill sends the wrong message to Hawaii residents and constituents. Encouraging Hawaiians to engage in sports betting during these risky economic times is not what the state needs, she said.
Hawaii may soon join the growing list of states that have legalized online sports betting and daily fantasy sports. The state legislature is currently considering a bill that would allow for both activities to be conducted online, opening up a new revenue stream for the state and providing residents with more options for entertainment.
The bill, which is being sponsored by State Senator Gilbert Keith-Agaran, has gained support from both lawmakers and industry stakeholders. Proponents of the bill argue that legalizing online sports betting and daily fantasy sports will bring in much-needed revenue for the state, which has been hit hard by the economic impacts of the COVID-19 pandemic.
In addition to the financial benefits, supporters of the bill also point to the potential for increased consumer protection. By legalizing and regulating online sports betting and daily fantasy sports, Hawaii can ensure that residents are participating in safe and fair gaming activities.
If the bill is passed, Hawaii would join a growing number of states that have legalized online sports betting and daily fantasy sports in recent years. States like New Jersey, Pennsylvania, and Michigan have all seen success with their online gaming industries, bringing in millions of dollars in tax revenue and creating new jobs in the process.
While there is still some opposition to the bill, particularly from groups that are concerned about the potential for increased problem gambling, it seems likely that Hawaii will soon join the ranks of states that have embraced online sports betting and daily fantasy sports. With the potential for significant economic benefits and increased consumer protection, it seems like a win-win for the state and its residents.