Sports betting and online casino gambling bills were recently announced in the Aloha State, but it is highly unlikely either will pass legislative muster, leaving Hawaii as one of the few states without gambling of any kind.
Long Shot Legislature
Virtually all states have some form of legalized gambling. But there are exceptions, very few exceptions, and Hawaii is one of them. The Polynesian paradise doesn’t even have a state lottery, and no commercial or tribal casinos can be found. Therefore, any attempt at bringing mobile gaming to the Aloha State must be considered an unequivocal long shot.
But nothing ventured, nothing gained, according to several lawmakers who have decided to sponsor several gaming bills currently being considered. Companion bills HB 1308 and SB 1569 would legalize sports betting and daily fantasy sports under the regulatory auspices of the state’s Department of Business, Economic Development and Tourism.
Senator Kim Decoite is a co-sponsor of SB 1569 but has introduced her own bill, SB 1572, which would create the Hawaii State Sports Wagering Commission under the umbrella of the Department of Business, Economic Development, and Tourism.
Decoite’s Bill
According to Decoite’s legislation, SB 1572 is crafted to forge “a legal, safe, and regulated framework for sports wagering” while seeking to “combat illegal gambling activities, protect consumers, promote responsible gambling practices and mitigate associated risks, and generate additional revenue for the State to allocate to public initiatives, including education, housing, and infrastructure.”
Decoite’s bill shares commonalities with the other two bills proposed, including allowing sportsbooks to offer prop bets, college wagering, as well as exchange wagering. Moreover, like the other bills, only sportsbooks established in at least three US jurisdictions will be considered for licensure at a cost of $250,000 for an initial five-year license.
But SB 1572 does depart slightly from the other two gaming bills in that it would legalize both retail and online sports betting while instituting a higher tax rate of 15% of adjusted gross revenue and does not impose a minimum number of licensees. Unlike the other two, fantasy sports are not included in Decoite’s bill.
iGaming on the Horizon?
If getting sports betting legalized in Hawaii is a long shot, then getting iGaming over the legislative finish line has to be the proverbial Hail Mary. Legislatures in only seven states, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island, have passed online casino gambling compared to 39 states that have launched sports betting.
Senator Ron Kouchi has sponsored the latest iGaming legislation, SB 1507, which “Establishes the Hawaiʻi Lottery and Gaming Corporation for the purpose of conducting and regulating wagering and gaming in the State. Establishes the Lottery and Gaming Special Fund and allocates certain percentages of the fund to various community betterment purposes.”
It would allow the newly established Hawaii Lottery and Gaming Corporation to contract an online gaming provider to offer games of chance and skill, including lottery, poker, casino slots and table games. Kouchi’s bill does not include a sports betting provision and would take effect July 1st if passed.
