Hawaii looks set to join the list of US states that allow legal sports betting. On April 8, the state Senate voted 15-10 to approve House Bill 1308, a law that would give the go-ahead to online sports betting and daily fantasy sports contests. The bill led by Representative Daniel Holt now goes back to the House of Representatives for them to okay the changes the Senate made.
Senate-Backed Bill Outlines Tax Rules and Licensing for Hawaii’s Emerging Gambling Market
The new law sets up rules and financial matters for the fresh gambling industry. If it passes, at least four permits will be up for grabs for online sports betting companies starting July 1, 2025. These companies would have to pay a 10% tax on their adjusted gross income and shell out $250,000 for both getting and renewing their permits.
The bill’s oversight provisions underwent a significant change during its Senate review. At first, the Department of Commerce and Consumer Affairs was set to handle regulatory duties. However, the department’s head raised worries about their ability to manage the industry. As a result, lawmakers tweaked the bill to give regulatory power to the Department of Law Enforcement. The Department of Taxation will take care of tax collection.
Those who back the bill say legalizing sports betting will do two things. It will bring existing underground activity under regulation and create a new source of state income. This comes at a time when Hawaii’s lawmakers are looking at different fiscal changes, including hiking taxes on tourism and other sectors.
Hawaii’s Sports Betting Bill Advances, but Concerns Over Social Impact Persist
Despite its progress, the bill has faced pushback. Some senators worry about the social harm that could result from easier access to gambling. Senator Sharon Moriwaki shared stories from her constituents about addiction and financial troubles, asking if the state can stop these problems. Senator Lynn DeCoite agreed, warning that pushing gambling during tough economic times might hurt local communities.
The bill’s success has caught many people off guard, given Hawaii’s long-standing opposition to all types of commercial gambling. Along with Utah, it is one of just two states that completely ban legal betting, not even having a state lottery.
The legislative session ends on May 2, leaving little time to get final approval. Still, many think the House will agree with the Senate’s changes. Governor Josh Green has said he might support sports betting. If he signs the measure, it will bring a big change to state policy and start a regulated market around mid-2025.