- A Hawaii online sports betting bill is advancing through house committees
- The bill will legalize online sports betting in the state
- Hawaii has no legalized gambling of any kind
Hawaii is once again considering the legalization of online sports betting and a House bill has successfully made its way through several committees.
Rep. Daniel Holt’s (D-28) bill, HB 1308, seeks to legalize online sports betting in the Aloha State. Hawaii currently has no legalized gambling of any kind.
It’s the second year in a row Holt has proposed a sports betting bill. He successfully ushered a bill through a house committee in 2024 before its ultimately was defeated.
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The House Judiciary and Hawaiian Affairs Committee most recently approved Holt’s bill by a 6-4 vote, moving it along to the House Committee on Finance. Last month, the bill was unanimously approved House Economic Development and Technology Committee.
Hawaii is facing a fiscal crisis, Rep. David Tarnas (D-8) said prior to voting in favor of the bill, and despite never moving a gambling bill forward it is time to work towards a new fiscal solution for the state.
“We are in a fiscal crisis. We’re facing significant cuts that we have relied upon from the federal government, and setting aside the reasons those are happening, I’m just trying to deal with the critical issue that we have programs within this committee’s jurisdiction … we need to continue funding these programs. The other committees have priorities as well, so I’m trying to be creative to move forward with the legislation,” he said.
Holt’s bill calls for at least four online sports betting licenses to be awarded to operators in the state. Each license will cost $250,000 to acquire and a 10% tax rate on adjusted gross sports betting revenue will be levied upon operators.
The Department of Commerce and Consumer Affairs will regulate sports betting in the state if approved. However, the department submitted testimony to the committee in opposition of the bill.
“The department’s mission is to protect consumers, promote fair competition, and foster a healthy and vibrant business environment in Hawaii. While we are charged with overseeing a wide array of industries, the introduction of regulating sports wagering presents unique challenges that may conflict with our existing mandate. Therefore, the department may not be suited to regulate this operation,” Nadine Ando, director of the Department of Commerce and Consumer Affairs, wrote in her testimony.
Several Groups Strongly Oppose Online Sports Betting
Despite the committee approval, several pieces of submitted testimony from powerful Hawaiian organizations opposed the bill.
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.
“The Department is gravely concerned about the harmful impacts that legalization of gambling will have on our community and respectfully requests that this bill be held,” the department wrote in its testimony.
The Department of the Prosecuting Attorney of the City and County of Honolulu submitted testimony “in strong opposition” of the bill.
The department notes the state includes an exception for “social gambling,” such as an informal poker night among friends, or a Super Bowl betting pool, in which Hawaiian residents can enjoy sports betting already.
“Once gambling starts to involve large scale operations, business corporations or other money-making entities, however, the department is extremely concerned about the known risks and societal costs associated with legalized gambling. Our laws currently list ‘gambling’ within the definitions of ‘organized crime’ and ‘racketeering’ for good reason,” the department wrote in its testimony.
The Hawaii sports betting bill has been making steady progress in the House committees, signaling a potential shift in the state’s stance on gambling. The bill, which aims to legalize sports betting in Hawaii, has been met with both support and opposition from lawmakers and residents alike.
One of the main arguments in favor of the bill is the potential economic benefits it could bring to the state. Proponents argue that legalizing sports betting would generate significant revenue for Hawaii, which could be used to fund important programs and services. Additionally, supporters believe that regulating sports betting would help protect consumers from illegal and unregulated gambling activities.
On the other hand, opponents of the bill have raised concerns about the potential negative impacts of legalizing sports betting. Some lawmakers worry that it could lead to an increase in problem gambling and addiction, while others fear that it could tarnish Hawaii’s reputation as a family-friendly tourist destination.
Despite these concerns, the bill has continued to move forward in the House committees, with several key provisions being debated and amended along the way. One of the most contentious issues has been whether to allow online sports betting, with some lawmakers arguing that it would be more convenient for consumers while others express concerns about the potential for increased problem gambling.
As the bill progresses through the House committees, it will be important for lawmakers to carefully consider all aspects of the legislation and its potential impacts on Hawaii. Ultimately, the decision to legalize sports betting will have far-reaching consequences for the state, and it is crucial that all stakeholders are involved in the discussion and decision-making process.
