An online sports betting bill has cleared a legislative committee in Hawaii, giving a bit of momentum to the prospect of legalized wagering in the Aloha State.
The Hawaii House of Representatives Committee on Economic Development met Wednesday and passed (on a divided vote) House Bill 2765, which provides for the legalization and regulation of online sports betting in the island state.
Committee members also approved a few amendments to the legislation, which would allow multiple operators to be licensed in Hawaii and to accept wagers from customers aged 18 and older.
One tweak to H.B. 2765 ensures that proceeds of mobile sports wagering will go to a special fund in Hawaii’s Department of Law Enforcement and be used to combat illegal gambling conducted both in-person and online.
“Part of the fund will be used to create a gambling mitigation program, which currently does not exist in our state,” added Rep. Daniel Holt, the chairman of the economic development committee and sponsor of H.B. 2765.
The Hawaii House of Representatives Committee on Economic Development just passed (with a few amendments) H.B. 2765, which provides for the legalization and regulation of online sports betting in the state.
— Geoff Zochodne (@GeoffZochodne) February 7, 2024
Multiple operators could be licensed to do business on the archipelago… pic.twitter.com/o2BJisNfbe
Holt has said in the past that another reason for his introduction of H.B. 2765 (as well as a casino-related bill) is to provide Hawaii’s tourism sector with another tool to attract visitors.
Multiple operators could be licensed to do business on the archipelago under the legislation, which has the backing of several major online sports betting operators, including DraftKings and FanDuel. Those operators are arguing that millions of dollars in online gambling is already happening in Hawaii, but the state isn't realizing any financial benefit from that activity.
“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,” a lobbyist for the Sports Betting Alliance wrote in recent testimony to the House economic development committee.
H.B. 2765 could create that competitive framework for sports betting in Hawaii, which is one of just two U.S. states with no legalized gambling (despite previous attempts in the legislature to change that fact). It would also raise a certain amount of fee and tax revenue for the state, although exactly how much remains to be seen.
'Gambling is wrong'
According to the bill, an entity could qualify for a license from the Hawaii Department of Business, Economic Development, and Tourism if it already offers online sports betting legally in at least three U.S. jurisdictions. However, the cost for a three-year license and the tax rate for wagering have yet to be determined; there were even blanks in the legislation waiting to be filled.
The economic development committee also passed H.B. 2762, which aims to establish a hotel and casino on Oahu. Hawaii's 2024 legislative session started January 17 and is scheduled to adjourn in early May.
Nevertheless, opposition to both casino gambling and online sports betting has emerged, and both bills may never become law if they don’t attract enough support in the full House and Senate.
There are also multiple pieces of gambling-related legislation before lawmakers this year.
“I'm going to vote no against this bill, believing that gambling is wrong and that the tax revenue from this isn't going to justify its legalization,” Rep. Elijah Pierick said during Wednesday’s committee meeting.
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