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Summary:
- House Bill 1308, which would legalize online sportsbooks in Hawaii, passed the House with a 35-15 vote.
- Despite marking historic progress, the bill is facing opposition in the Senate, where a similar measure has already failed.
- If passed, the bill would allow at least four sportsbooks in Hawaii.
Hawaii is edging closer to joining the ranks of states with legalized online sports betting.
House Bill 1308, which aims to legalize online sports betting in the Aloha State, recently made history after a 35-18 vote of approval in the House of Representatives.
This was a landmark moment for gambling lobbyists in the state, as no other related legislation has managed to go so far along.
The bill, which has advanced to the Senate, is getting ready to face its next big test.
Representative Daniel Holt is the main supporter of HB 1308 and also the one who championed it with the declared goal of opening a regulated sports betting market in the state.
Nonetheless, despite the success it enjoyed in the House, the bill’s odds of moving forward in the Senate and avoiding its demise are still rather uncertain.
This is particularly true in the context of a similar measure, Senate Bill 1569, that met swift opposition in the Senate Commerce and Consumer Protection Committee.
Once HB 1308 reaches the Senate, it will encounter many of the same lawmakers who already rejected its counterpart.
Strong Opposition to Making Gambling Legal
Hawaii’s historical opposition to gambling legalization is another obstacle for Holt’s HB. The state has been known to consistently say no to all efforts to introduce commercial gambling.
Among the key governmental agencies that have expressed strong opposition over the years are the Department of the Prosecuting Attorney, the Department of Business, Economic Development and Tourism, and the Attorney General’s office, all of whom have submitted written statements arguing against the proposed legislation.
The testimony of Oihana (Ka Loio Kuhina, AG) read,
Studies have shown that legalized online sports betting results in adverse societal impacts, high costs to address those adverse impacts, and increased crime.
Stop Predatory Gambling’s national director Les Bernal.
The lobbying effort in Hawaii is being driven by the greed of powerful, out-of-state financial interests who stand to reap hundreds of millions of dollars in profits at the expense of your constituents.
Given this staunch opposition and the failure of SB 1569, the odds of HB 1308 passing in the Senate appear slim. Lawmakers have until May 2, the conclusion of the 2025 legislative session, to make their decision.
Key Provisions of HB 1308
If given the green light, HB 1308 would allow a minimum of four online sportsbooks in Hawaii. The venues would fall under the regulation of the Department of Business, Economic Development and Tourism.
Initially, the HB introduced a 10% tax rate proposal on operators, which was later removed. The same happened to the original licensing fee set to $250,000, which lawmakers eventually deemed insufficient.
These details are expected to be revisited in the Senate, provided the bill moves forward.
Additionally, HB 1308 aims to legalize daily fantasy sports, potentially expanding gaming options in the state.
