- A Hawaii sports betting bill is making its way to the House of Representatives floor
- HB 1308 was moved out of the House Finance Committee this week
- The bill was moved to the House with several amendments
A Hawaii sports betting bill has made its way to the House after being approved by several committees over the last week, but questions on taxation and licensing fees still need to be answered.
Rep. Daniel Holt’s (D-28) bill, HB 1308, was approved by the House of Representatives Finance Committee after a 12-3 vote this week, sending the legislation to the House to potentially be discussed on the House floor.
However, the bill was approved as a “work in progress,” as both its tax rate and licensing fees have been left blank for further consideration.
Questions on Taxation, Fees
The approval in the House Finance Committee is the third committee in the last several weeks to give their blessing to the bill.
However, prior to the vote Finance Chair Rep. Kyle T. Yamashita (D-12) amended the bill to leave the potential tax rate and licensing fee blank, as several members of the committee believed they were too low. Holt agreed and the bill was amended to allow for further discussion on the rates.
“The license fee is rather low for an industry that makes billions of dollars. I’d like to see this license fee go up exponentially,” Rep. Sue L. Keohokapu-Lee Loy (D-2) said at the hearing.
Holt’s bill calls for at least four online sports betting licenses to be awarded to operators in the state. Originally, it listed a license fee at $250,000 to acquire and a 10% tax rate on adjusted gross sports betting revenue.
The piece of legislation is a new stream of revenue for the state when legislators have been tasked to find new monies, Holt said.
“You always tell us to find revenue sources, and I think this is a good discussion to have. I don’t think we’ll be creating a bunch of new gamblers, but will be collecting the tax revenue from those who already choose to participate in this type of entertainment,” he said.
While Holt’s bill now moves to the House, the bill’s companion piece in the Senate, SB 1569, has not had as smooth a path. It was recently deferred by the Senate Commerce and Consumer Protection committee.
Opposition Still Remains
While the bill moves through the House, it still faces quite a bit of opposition from various state agencies.
The Department of the Attorney General submitted testimony to the committee opposing legalized online sports betting, citing concerns of rising problem gaming rates and numerous public safety and health issues.
“In addition to the direct impacts of online sports betting on household finances, multiple studies have shown a correlation between problem gambling and domestic violence, with approximately 38.1% of problem gamblers reportedly being victims of intimate partner violence, and 36.5% percent reportedly being perpetrators of intimate partner violence,” the department wrote in its testimony.
The Hawaii Family Forum noted in its submitted testimony that the bill represents “a major cultural shift” which poses significant consequences for Hawaiian families, individuals with problem gambling additions, and the “broader common good.”
After New Jersey legalized sports betting in 2018, the state’s Council on Compulsive Gambling has seen an increase of more than 277% in calls to its problem gambling hotline, according to the Hawaii Family Forum.
“Sport, at its best, builds character. It teaches discipline, teamwork, and perseverance. It brings people
together—regardless of background—creating moments of pure joy and shared excitement. But when sports
gambling is commercialized, it strips away these noble aspects and turns the game into just another way to
make money. Instead of inspiring athletes to push their limits for the love of the game, it turns them into
commodities—tools for profit, often without their knowledge or consent,” the forum wrote in its testimony.
The Hawaii sports betting bill is currently making its way through the legislative process, and many residents are eagerly awaiting the outcome. If passed, this bill would legalize sports betting in the state, allowing residents to place bets on their favorite teams and events.
One of the main reasons why this bill is being considered is the potential revenue it could bring to the state. With neighboring states like Nevada and New Jersey already legalizing sports betting, Hawaii is missing out on a significant source of income. By legalizing sports betting, the state could generate millions of dollars in tax revenue each year, which could be used to fund important programs and services.
In addition to the financial benefits, legalizing sports betting could also help to regulate an industry that is currently operating underground. By bringing sports betting into the light, the state can ensure that residents are protected from unscrupulous operators and that bets are placed in a fair and transparent manner.
However, there are also concerns about the potential negative impacts of legalizing sports betting. Some opponents worry that it could lead to an increase in problem gambling and addiction, particularly among vulnerable populations. Others are concerned about the potential for match-fixing and corruption in sports, which could undermine the integrity of games.
Despite these concerns, many supporters of the bill argue that the benefits outweigh the risks. They point to the success of other states that have legalized sports betting, such as New Jersey, where revenues have exceeded expectations and problem gambling rates have remained stable.
As the Hawaii sports betting bill approaches the house floor, it is important for residents to stay informed and voice their opinions on the issue. Whether you are in favor of legalizing sports betting or against it, now is the time to make your voice heard and participate in the democratic process. The outcome of this bill could have far-reaching implications for the state, so it is crucial that residents stay engaged and informed on this important issue.