Hawaii Sports Betting Bill Still Alive Following House Vote
The Hawaii House of Representatives has advanced a bill that could legalize sports betting in the state, moving it one step closer to potential approval. House Bill 1308 successfully passed through various committees, with some lawmakers expressing reservations before ultimately voting in favor. The bill was approved by the House on March 4, with 16 representatives voting against it. The vote came ahead of the March 6 crossover deadline, ensuring the bill remains active for further consideration in the Senate.
LISTEN TO THIS ARTICLE:During discussions leading up to the vote, legislators opposed to the bill expressed concerns regarding the impact of legalizing sports betting in Hawaii. Among their primary concerns were the potential outflow of local money to out-of-state operators, the possible increase in gambling addiction, and perceived threats to the integrity of sports. Some lawmakers drew strong comparisons between sports betting and illicit substances, with one legislator arguing that any revenue the state might collect from legal wagering would be tainted.
Related: Hawaii Proposes Legislation to Legalize Online GamblingWhile HB 1308 made it past the House, a companion bill, Senate Bill 1569, was halted by the Senate Consumer Protection and Ways and Means Committee on February 26. The committee deferred the bill without discussion, leaving uncertainty as to whether the Senate will be receptive to HB 1308 or other sports betting proposals. The decision not to advance SB 1569 may indicate broader resistance within the Senate, but it remains unclear how senators will approach the House bill when it reaches their chamber.
Rep. Daniel Holt, who has introduced multiple sports betting bills in past legislative sessions, has pushed for the legalization of online wagering in Hawaii. This year marks the first time a bill on the issue has made it through the House.
Holt stated during his introduction of the bill on March 4 that he believed he had refined the proposal to address concerns raised in previous sessions. The legislation, as currently structured, would allow up to four digital sports betting platforms to operate in Hawaii while prohibiting physical sportsbook locations.
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Tax Requirements Still Unclear
One of the key aspects of the bill that remains open for discussion is the tax structure and licensing fees. The original proposal included a 10% tax rate on operators and a $250,000 application fee for licenses.
However, these provisions were removed by the House Finance Committee, as they appeared to be points of contention. Committee chair Kyle Yamashita suggested that eliminating these fees and tax provisions would allow for continued discussions on the matter. The Senate has the authority to reinstate these provisions or determine whether the final decision should be left to a future regulatory body.
The debate over tax rates and licensing fees is common in legislative discussions on gambling. In Georgia, where lawmakers are also considering sports betting legislation, a proposed tax rate was recently increased from 20% to 24% during a committee hearing.
Representative Sue L. Keohokapu-Lee Loy has expressed the opinion that the initial license fee of $250,000 was too low for an industry generating billions of dollars in revenue. She suggested that the fee should be significantly higher to reflect the potential earnings of licensed operators.
Hawaii remains one of 11 states that have not legalized sports betting since the repeal of the Professional and Amateur Sports Protection Act in 2018. It's also among at least eight states that have introduced bills related to sports betting during the 2025 legislative session. While some states, such as Mississippi and Minnesota, have stalled or rejected similar legislation, Georgia is actively considering its own proposal, with lawmakers there facing a deadline to pass a sports betting bill before the legislative crossover cutoff.
With HB 1308 now moving to the Senate, Hawaii legislators will have until May 2, the scheduled adjournment date for the 2025 legislative session, to debate and decide the bill's fate.
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