In February, we reported on the progress of Rep. Daniel Holt’s Hawaii online sports betting bill, which made its way to the House of Representatives.
Since then, House Bill 1308 has passed through several committees, securing a strong majority vote on the floor.
Earlier this week, the Aloha State took one more important step forward, considerably boosting the chances of seeing regulated sportsbooks become accessible to residents.
Namely, the Senate Ways and Means Committee voted in favor of the bill, though some members expressed “reservations,” reflecting ongoing political hesitations.
Still, the most recent vote represents the longest path a sports betting bill has ever walked in Hawaii.
Changing Views Regarding Sports Betting
Up until now, the Senate has been deemed less receptive to the idea of sports betting than the House. However, fresh developments may imply a serious change of attitude.
HB 1308 first cleared the Senate Committee on Commerce and Consumer Protection before moving to the influential Ways and Means Committee, a potential indicator of growing support.
If the Senate passes the bill, the House will need to approve any of the Senate’s amendments before turning it into law.
While the odds have improved irrefutably, House-Senate negotiations are still likely to become tense. With the Legislature’s session coming to an end in less than a month, the governor’s approval is not set in stone.
Sportsbook Could Bring $20M in Annual Tax Revenue
Big sportsbook names in the industry, together with the state’s labor unions, have all turned into important advocates for the bill.
If all goes according to the plan for supporters, the decision to legalize online sports betting would attract around $20 million in tax revenue each year from legal sportsbooks.
Compared to Hawaii’s overall budget, the figure might seem low. However, proponents argue the money could still provide important funding for education and a series of other services aimed at the public.
The bill also faces strong opposition from the Hawaii Attorney General’s office, the state Department of Commerce, Honolulu Prosecutor Steve Alm, and several religious and anti-gambling organizations.
Opponents worry that legalized sports betting could lead to addiction and other gambling-related issues, ultimately harming local communities.
“I’m afraid that in a couple of years we are going to have a whole generation of problem gamblers, typically young men. So I think this would just be opening up a Pandora’s box,” the prosecutor commented.
Another important voice against the bill is Boyd Gaming, a Las Vegas casino operator that currently reaps the benefits of the steady influx of Hawaii residents who choose to gamble in Nevada.
Good Conditions for Operators
The current proposal would allow bettors who are physically located in Hawaii to get access to at least four sportsbook operators.
Leading brands such as BetMGM, DraftKings, FanDuel, and Fanatics have all shown strong interest in entering the market. Other potential entrants include Caesars, BetRivers, and ESPN BET.
The bill would establish a $250,000 licensing fee and a 10% tax applied to gross gaming revenue, making Hawaii one of the least expensive states for operators to enter.
If approved, all licensed sportsbooks would launch on a single universal start date, with operations required to begin before January 1, 2026, as established by Ways and Means chair Donovan Dela Cruz.