While many media outlets reported that mobile sports betting in Hawaii would not happen this year, Representative Daniel Holt’s legislation proves otherwise. House Bill 1308 has thus far advanced through the House and two Senate committees.
Still Standing
Hawaii is only one of two states without casinos, sports betting, lotteries or daily fantasy sports. Therefore, it is not surprising that any gaming legislature is a long shot despite several attempts in the past.
However, this year is unique in that Representative Daniel Holt’s House Bill 1308 is still standing after surviving the scrutiny of House committees and last week sailed through the Senate Commerce and Consumer Protection and Economic Development and Tourism committees. The bill would legalize mobile sports betting and daily fantasy sports.
A study has also been requested to research the effects of mobile sports betting in the Aloha State, but some lawmakers are arguing the findings of the study should be evaluated before the legislature takes any action. Yet, this is the furthest any gaming legislation has gotten in the state’s history, and the bill appears to be gaining traction.
One Step Closer
Although the initial bill set a flat fee of $250,000 for a five-year license and a 10% tax on sports betting revenue, those elements have been eliminated for the time being. As of this writing, the bill must be approved by the Senate Ways and Means Committee before a floor vote is taken.
Senator Donna Mercado Kim said in a recent hearing, “I play games on my phone, and it always pops up that I can play bingo and win money, or I can play solitaire and win money. It’s already there. I’m sure a lot of people are doing it already; it’s so easy.”
Assuming the bill does pass and a 10% tax rate is implemented on sportsbook revenues, it is estimated the state would reap $10 million to $20 million per annum. Holt’s bill calls for up to four mobile sportsbooks in the state but no retail wagering.
After an amendment last week, the Department of Business, Economic Development, and Tourism has been designated as the governing body for the industry should the bill pass.
Two Sides to Every Story
As with nearly every bill that arrives in a state legislature, there are proponents and opponents. In this case, those advocating for a mobile sports betting industry cite the millions of dollars that will be generated for the state, while its detractors point to the societal ills, specifically the anticipated rise in problem gambling addiction.
Kathleen Owen, an attorney with an outside law firm representing the Sports Betting Alliance, an industry trade group 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.”
Representative Holt rebutted claims of increased problem gambling, stating, “I personally don’t think we’re going to be creating a bunch of new gamblers. 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.” Yet, several government agencies, including the attorney general’s office, have spoken against mobile sports betting.
The bill has until May 2nd to be passed before the session adjourns.
