A bill on legal online sports betting was moved from Hawaii’s House Finance Committee to the House floor on Monday.
The bill, an amended version of HB 1308, gained the committee's overall approval, though six members voted “with reservations.”
According to the bill’s description, HB 1308 would establish licensing requirements for sports wagering operators and suppliers while letting the Department of Commerce and Consumer Affairs regulate sports wagering in Hawaii.
To make the bill less likely to meet resistance, chairman Kyle Yamashita suggested amendments before the vote of the House Finance Committee. Yamashita’s suggestions included removing the tax rate and the licensing fee for further review. These were both discussion topics during the hearing, and Yamashita proposed that the committee advance the bill to the house floor “as a work in progress.”
Representative Sue L. Keohokapu-Lee Loy stated that considering the size of the sports betting industry, a licensing fee of $250,000 appeared “rather low for an industry that makes billions of dollars.” She added, “I would love to see that license fee go up exponentially.”
Suggested Guidelines for Hawaii Tax Revenue
Local unions revealed that they support the House Bill, as they see it as a means of reducing the high cost of living.
Likewise, representatives from BetMGM, DraftKings, and the Sports Betting Alliance (SBA) - which consists of BetMGM, DraftKings, Fanatics Sportsbook, and FanDuel - have also expressed their support, stating that a legal market would make it easier for law enforcement to reduce illegal gambling and increase tax revenue.
Jeremy Limun, BetMGM’s Head of Government Affairs, has suggested a tax revenue for Hawaii in the range of $10–$20 million per year. This is based on a 10% tax rate, local population, operator revenue of $100–$200 million per year, and a handle of $1 billion or more per year.
Concerns Raises Over Gambling Addiction and Associated Crimes
During the public hearing, testifying opponents of the bill emphasized the risks of addiction, as well as the increased risk of bankruptcies and crimes related to gambling addiction.
To reassure these concerns, it has been clarified that the bill would allow only online sports betting, with no more than four licenses to be issued. Customers would also be able to use their credit cards to make payments into their accounts, a method that remains banned in some states.
SB 1308’s companion bill, SB 1569, which is being heard Wednesday, would also create a Problem Gambling Prevention and Treatment Special Fund. In addition to establishing the fund and confirming what is set out in SB 1308, SB 1569 outlines what is considered appropriate funds to reassure public concerns.
In recent news Hawaii’s proposed SB 893, which would legalize casino gambling within the state, failed to advance after opposition from various government organizastions argued that casino gambling would be socially and financially risky.
