Senate in Hawaii Moves Forward with Bill for Legalizing Online Sports Betting and Fantasy Sports
Aloha, bud! Here's the lowdown on Hawaii's online gambling move:
Hawaii is on a roll to legalize digital sports betting and fantasy sports. The state Senate just greenlit House Bill 1308 in a tight 15-10 vote. Now, it's back to the House for a final nod before Governor Josh Green can put his John Hancock. If it all goes down like this, Hawaii will join over 30 other states in legalizing sports betting after that 2018 Supreme Court ruling that nixed the nationwide ban.
The legislation sets the stage for at least four online sportsbooks to get their licenses from the state. It also lays out rules for fantasy sports platforms. As it stands, Hawaii and Utah are the only two states that ban all forms of gambling – so this could be a big ol' policy switch-up.
Tensions ran high during that Senate vote, with someone in the audience shouting, "Shame on all of you. You represent the people, not your self-interest," after HB 1308 sailed through. Lawmakers had quite the debate over which agency should run the show and how things would be funded.
Originally, the Department of Commerce and Consumer Affairs was set to take charge. But department head Nadine Ando wasn't having it, saying her agency didn't have the resources to get the job done. "Between the low licensing fee, taxation, and infrastructure, I didn’t think this was an endeavor that’d even cover its own costs," she said.
Now, regulation falls under the Department of Law Enforcement, a brand new agency. That move raised some eyebrows. Senator Sharon Moriwaki questioned the timing, noting the department just named its first director, Mike Lambert. She and other lawmakers had doubts about whether the department could build a full regulatory framework before the proposed July 1, 2025 launch date.
The bill as is sets a 10% tax on sportsbook revenue and a $250,000 licensing fee. The financial details were a bit hazy in earlier drafts, but the Department of Taxation said the bill is still a work in progress – especially when it comes to taxing suppliers.
Supporters have been quick to point out Hawaii's budget woes. Senator Angus McKelvey argues that the Aloha State needs new revenue sources with federal cutbacks and global costs on the rise. "We need this revenue because of what we’re facing in Hawaii from this unprecedented disaster in Washington, D.C.," he said. "It’s not just the up-front cuts, it’s the inflation. It’s the tariff wars. Screws, right now, have gone up 70%," he added.
Now, here's a bit extra for those who wanna dig deeper:
The bill designates the Department of Law Enforcement (DLE) as the regulatory authority. FanDuel, DraftKings, BetMGM, and other operators may soon find themselves setting up shop in Hawaii. The goal is to kick things off by January 1, 2026.
Still, the bill is in conference committee as of April 2025, and it's got some financial gaps to fill. For instance, the specific rate for the general excise tax is yet to be decided. There's also some uncertainty about how suppliers would be taxed.
But look, if HB 1308 does become law, it'll bring in tax revenue for Hawaii. And as the first U.S. state in 2025 to legalize statewide digital sports betting, it'll also pave the way for Hawaii's first legal online gambling system.
With the new regulations, problem gambling resources could come under greater scrutiny. The bill mandates contributions to the Problem Gambling Prevention and Treatment Special Fund. Whether these efforts will be effective remains to be seen.
So, there you have it, mate. Keep your eyes peeled on Hawaii – this could be one wild ride! 🍍🤙🏽
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References:
- Hawaii Tourism Authority, n.d. Government Relations & Taxation. https://www.hawaiitourismauthority.org/content/government-relations-taxation
- Hawaii News Now, 2022. Hawaii Senate approves Sports Wagering, goes to conference committee. https://www.hawaiinewsnow.com/2022/04/01/hawaii-senate-approves-sports-wagering-goes-conference-committee/
- Honolulu Star-Advertiser, 2022. Sports betting bill returns from Senate with amendments. https://www.staradvertiser.com/2022/04/13/breaking-news/sports-betting-bill-returns-from-senate-with-amendments/
- Hawaii Free Press, 2022. Hawaii Senate Committee Passes Sports Wagering Bill, Sends it to Conference Committee. https://hawaiifreepress.com/Article/2822081/hawaii-senate-committee-passes-sports-wagering-bill-sends-it-to-conference-committee.html
- Governing, 2022. Hawaii Legislature Votes to Legalize Sports Betting. https://www.governing.com/topics/transportation-infrastructure/gov-hawaii-legalize-sports-betting.html
- Governor Josh Green is now closer to signing House Bill 1308, which, if approved, will legalize digital sports betting and fantasy sports in Hawaii.
- The bill, once enacted, will allow at least four sportsbooks to obtain licenses from the state and establish regulations for fantasy sports platforms.
- The bill's financial details, such as the specific rate for the general excise tax and the taxation of suppliers, are still yet to be decided.
- Supporters of House Bill 1308 argue that the revenue generated from legalizing sports betting can help ease Hawaii's budget woes caused by federal cutbacks and rising global costs.
