Hawaii’s sports betting measure has cleared more legislative hurdles than most would have imagined, but another critical test looms as the Senate will determine the bill’s fate.
Milestone Moment
Representative Daniel Holt’s mobile sports betting bill, House Bill 1308, passed through a series of House committees before the floor of the lower chamber voted 35-15 to advance it to the Senate. Since that time, HB 1308 sailed through the Senate Commerce and Consumer Protection Committee before the Economic Development and Tourism Committee also passed the bill.
However, the true litmus test came when the bill was recently passed by the third and most powerful council, the Senate Ways and Means Committee, by a vote of 11-2, with four of those yes votes qualified as “aye with reservations.”
Now comes the milestone moment as the full Senate awaits its turn to vote on the bill. After five consecutive years of hearing mobile sports betting bills, HB 1308 has made it further than any previous iteration in Hawaii’s history.
Odds in Their Favor
The House gave the bill a fighting chance by adding amendments to the original bill, which struck the proposed tax rate of 10% and the specified licensing fees, deferring to the Senate committees to fill in those blanks. The Ways and Means Committee did just that by reinserting the 10% tax rate and establishing licensing fees as an initial license fee of $250,000.
The Ways and Means Committee also changed the governing agency from the Department of Business and Economic Development to the Department of Law Enforcement. The provision for four sportsbooks remained in the bill, and considering that the Sports Betting Alliance, comprised of industry powerhouses FanDuel, DraftKings, BetMGM and Fanatics, has been a major proponent of the bill, it is likely those coveted licenses will be theirs for the taking.
If the bill is passed and signed by the governor, the law would go into effect on July 1st, 2025, which means the first bets in the Aloha State could occur at some point in January 2026.
Powerful Foes
Although HB 1308 has proven the naysayers wrong up until now, there are too many influential critics to believe passage is a done deal. The Attorney General’s Office, religious organizations and anti-gambling groups have all been outspoken opponents of the bill.
Honolulu Prosecutor Steve Alm has made his opinion clear on the possible harmful effects gambling may have on the state’s younger generation. “I’m afraid that in a couple of years, we are going to have a whole generation of problem gamblers, typically young men,” he said.
Senator Lorraine Inouye stated, “I’ve received, and I’m sure most of you have received, phone calls coming in from spouses that their spouse, their husbands, have had gambling problems and created very emotional instances within their families. I just believe we are sending the wrong message.”
Fear of addictive gambling behavior is one of the biggest stumbling blocks for gaming bills in any jurisdiction. But considering that Hawaii is just one of two states without casinos, sports betting, daily fantasy sports or even a state lottery, it runs even deeper than a political divide. It is transforming a bit of the cultural nuance the island has enjoyed.
However, a study in 2022 reported that 73% of Hawaii’s residents supported online sports betting, and it is estimated that the new industry will generate between $10 million and $20 million in annual taxes.
