Hawaii, one of only two states without any form of legal gambling, is moving closer to authorizing sports betting after House Bill 1308 cleared several legislative hurdles and advanced to the full Senate floor.
In a surprising development, the Senate has approved Rep. Daniel Holt's bill by a 15-10 vote, sending the amended legislation back to the House for concurrence. This marks significant progress for gambling legislation in a state that has historically rejected all previous attempts to legalize any form of wagering.
The bill's advancement represents a potential turning point for Hawaii, which remains one of the last holdouts against legalized gambling in the United States. If approved, Hawaii would become the 40th state to legalize sports betting.
The current version of the bill includes several notable provisions:
Authorization of at least four online sports betting licenses
A 10% tax rate on adjusted gross revenue
$250,000 initial license fee for a five-year term
$250,000 renewal fee
No retail sportsbook component
Legalization of daily fantasy sports competitions
An important amendment designates the Department of Law Enforcement as the regulatory body, replacing the initially proposed Department of Commerce and Consumer Affairs. This change came after Director Nadine Ando expressed doubts about her department's ability to effectively regulate sports betting.
If the bill receives final approval and is signed by Governor Josh Green, it would go into effect on July 1, 2025. However, the actual launch of legal sports betting would not occur until January 1, 2026, giving regulators time to establish the framework and issue licenses.
The House Finance Committee previously approved the bill following a 12-3 vote, with six members classifying their votes as "with reservations." During committee discussions, concerns were raised about license fees being too low for an industry that generates billions annually.
"I would love to see that license fee go up exponentially," Representative Sue L. Keohokapu-Lee Loy stated during a committee meeting.
Despite its progress, HB 1308 continues to face opposition from various stakeholders, including the Honolulu Police Department, the Hawaii Department of Attorney General, and religious and anti-gambling groups.
During Senate discussions, several lawmakers voiced concerns about potential social consequences.
"I've received email messages, as have you, from parents and ex-gamblers writing of the tragic loss of life and homes due to addiction of sports gambling from those who cannot keep their fingers from clicking to bet," said Senator Sharon Y. Moriwaki. "It's easy to say that sports betting is already happening, so why not legalize it? That works only when there are effective regulatory enforcement structures in place, but that's not the case here."
Senator Lynn DeCoite added that the bill "sends the wrong message to Hawaii residents and constituents" during economically challenging times.
Representatives from the Sports Betting Alliance, including major operators such as BetMGM, FanDuel, Fanatics, and DraftKings, have participated in committee discussions, emphasizing the importance of establishing a regulated industry.
The proposed tax rate of 10% would be among the lowest in the United States, which has prompted debate about whether it would generate sufficient revenue to offset regulatory costs and fund problem gambling services.
The Hawaiian legislative session runs until May 2, giving lawmakers ample time to finalize the bill. The amended version must now return to the House for concurrence with the Senate's changes before it can move to Governor Green's desk for his signature.
If successful, Hawaii's entry into legal sports betting would represent a significant shift in the state's longstanding opposition to gambling, potentially opening the door for other forms of gaming in the future.