A House digital gaming bill recently advanced through another committee hearing as Hawaii is one step closer to seeing mobile sports betting becoming a reality for its 1.4 million residents.
Committee Approval
Senator Lynn Decoite’s SB 1569 has successfully traversed Hawaii’s perilous legislative waters. Decoite’s bill sailed through the Senate Economic Development and Tourism Committee by a 5-0 vote and awaits scrutiny by the Senate Ways and Means Committee.
However, a companion sports betting bill in the House, Representative Daniel Holt’s HB 1308, is moving at a more rapid pace. The bill first won unanimous support from the House Committee on Economic Development and Technology by a vote of 6-0, and earlier this week it won approval from the House Finance Committee. The bill will now be heard on the House floor.
Chairman Kyle Yamashita tweaked Holt’s bill to make it more palatable to fellow lawmakers by proposing that the tax rate (originally set at 10%) and the licensing fee be removed for the time being, with those details to be worked out later.
Yamashita likely took the tact after hearing Representative Sue L. Keohokapu-Lee Loy’s concerns that the licensing fee of $250,000 was “rather low for an industry that makes billions of dollars.” She added, “I would love to see that license fee go up exponentially.”
Rolling the Dice on Regulation
Kathleen Owen, an attorney with the law firm Orrick, Herrington & Sutcliffe representing the Sports Betting Alliance, which is comprised of BetMGM, DraftKings, Fanatics Sportsbook and FanDuel, testified:
“A regulated, competitive mobile sports betting market would replace the predatory, illegal platforms already operating in Hawaii and generate new revenue for the state through a policy that has the support of constituents. According to a 2022 poll conducted by Anthology Research, 73% of Hawaii residents support legalizing and regulating online sports wagering in Hawaii for adults 21 years of age or older to generate annual tax revenue.”
Not Everyone’s a Fan
Although the prospects of bringing mobile sports betting to the Aloha State are better than they have ever been, there are still many concerns from Hawaiian legislators. Representative Elijah Pierick expressed her concerns during a hearing last year, saying that “Numerous studies have confirmed gambling caused problems such as bankruptcy, theft, embezzlement, suicide, child abuse and neglect, divorce, incarceration, and homelessness.”
Even Chairman Yamashita referred to Holt’s bill as “a work in progress,” noting that half of the 12 members who voted yes did so with reservations. “I know there are concerns from many of the members…” he added. “The setting up of the regulatory process will obviously take some work. But every once in a while we do bring up gambling … I don’t think it’s a bad thing to talk about it every so often. I want to keep this thing moving.”
Representative Holt addressed those who are concerned with mobile sports betting causing an increase in gambling addiction in Hawaii. “I personally don’t think we’re going to be creating a bunch of new gamblers,” said Holt. “We’re just going to be collecting the tax revenue from those who already choose to participate in this form of entertainment. I do agree with all the amendments being made. The fee’s got to go up; tax has got to go up.”
