It doesn’t appear that Hawaii residents can count on legal sports betting coming to the Aloha State any time soon.
The latest attempt in the state legislature took a big hit last week when House Bill No. 344 garnered little to no interest from the House Committee on Economic Development at this time.
While the bill wasn’t completely killed, legislators made it clear in a hearing with sports betting lobbyists that this movement has been stymied.
“I think maybe, at some point, this may be a worthy cause for us but at this point, $7 million a year (in state tax revenue) may not be worth putting our communities at risk,” Committee Chair Rep. Daniel Holt said during the hearing. “There may be other opportunities in the future, but at this point, we’re going to be deferring this measure.”
What is HB 344?
This is the seventh proposed amendment to reach Hawaii legislators since sports betting became legal in 2021.
HB 344 is a bill that, if passed, would give sports book operators the ability to be licensed for online betting sites in Hawaii.
There are details about who can be licensed, including background checks and oversight of operators, and how the tax structure would work within the state.
The bill, which was introduced in January by Rep. John Mizuno (D-28), also includes the ability to establish a retail sportsbook and standalone card rooms. There is intentionally no mention of online casinos or slots in the amendment.
One of the reasons Hawaii has explored joining 35 legal sports betting states is because of wanting to add amendments to shut down illegal card game operations.
There’s another bill moving through the Aloha State legislation this month that would make running an illegal gambling operation a Class-C felony.
Big business for the Islands?
Supporters of legal sports betting in Hawaii want to cash in on the growing popularity of legal sports betting. It would also keep residents interested in placing wagers from having to travel to the mainland, like to Nevada or Arizona.
According to an estimate from the Sports Betting Alliance, Hawaii could produce $6.8 million in taxes to help the state.
DraftKings government affairs manager Rebecca London argued during the hearing that legalizing sports betting can act as an “additional enforcement mechanism” to curb illegal gambling.
That didn’t seem to move many legislators, even though they were informed that an estimated 276,000 people using illegal offshore sports betting or unregulated bookies.
