The Hawaii House Committee on Economic Development and Technology (ECD) approved a bill that allows online sports betting in Hawaii. Supporters introduced HB1308 on Jan. 23. If passed, the proposal paves the way for legalized mobile sports wagering in Hawaii. After hearing testimony both for and against the bill, Hawaii’s ECD Committee approved HB1308 on Jan. 31.
Hawaii online sports betting friends and foes
Testimony supporting HB1308 was predictable. Online sports betting providers were in favor. Jeremy Limun, Director of Government Affairs, representing BetMGM, discussed the opportunity for Hawaii to combat illegal sports betting by offering a legal, regulated alternative that also contributed to the state’s coffers.
Rebecca London, Senior Government Affairs Manager for DraftKings, echoed the importance of a regulated market saying, “DraftKings supports a sports wagering framework in Hawaii that protects consumers, generates revenue for the state, and stamps out the pervasive illegal market.”
While FanDuel and Fanatics didn't offer individual testimony, the Sports Betting Alliance (SBA) supported their interests. Kathleen Owen, an attorney with the law firm Orrick, Herrington & Sutcliffe representing the SBA 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.”
Boyd Gaming was one obvious opponent to the bill. Boyd properties in Las Vegas are popular with Hawaiian tourists. Boyd owns and operates Vacations Hawaii, providing vacation packages from the Aloha State to its many Downtown casino properties, including Main Street Station, the Fremont Hotel and Casino, California Hotel and Casino, and Sam's Town Hotel and Gambling Hall.
In fact, Hawaiian tourism was touted as a key driver in Boyd’s recent quarterly earnings report. It stated, “The Company's Downtown Las Vegas segment delivered another quarter of strong results, driven by recent property investments and growing Hawaiian visitation.” Boyd knows some percentage of those tourists might forgo the travel expense and bet from the comfort of their own lenais should online gaming become legal in Hawaii.
Boyd’s testimony warned legislators they might have buyer’s remorse if they choose to pass HB1308. Boyd testified, “While sports wagering is an important component of an overall gaming policy framework, taken alone it is not a significant source of tax revenue and creates few jobs. Many other states in comparable sized markets to Hawai’i that have passed isolated sports wagering legislation have been disappointed in the outcome—tax revenues from online sports wagering are often less than anticipated, and the revenues are usually not sufficient to fund or sustain regulatory and enforcement oversight and a responsible gaming infrastructure, crucial components of any gaming framework.”
After the testimonies, the EDC passed HB1308 with six representative voting “Aye” and one representative voting “Aye with reservations.” No representative voted against the bill.
While HB1308 cleared one hurdle, its still has many more to go. It still needs to clear the House Committee on Finance and the House Committee on Judiciary & Hawaiian Affairs. Once does, the Seante must hear and approve it. Only then will it hit Gov. Josh Green, MD for his signature.
