Hawaii’s Sports Betting Legislation Faces Unexpected Roadblock

Hawaii’s ongoing efforts to join the ranks of US states with legalized sports betting have hit a substantial obstacle despite earlier legislative momentum. House Bill 1308, the latest in a long series of attempts to legalize online sports wagering in the Aloha State, now finds itself in legislative limbo as the Hawaii House of Representatives declined to concur with recent Senate amendments.

Hawaii Represents a Significant Opportunity for Operators

If enacted, HB 1308 would make Hawaii the 39th state with legalized sports wagering. However, the proposed legislation faces mounting opposition, political disagreement, and growing skepticism regarding its economic viability and social impact. In the worst-case scenario, HB 1308 could miss the current legislative session, leaving Hawaii without sports betting for another year.

Hawaii is one of the only US states, along with Utah, where residents have no access to any legal form of commercial gambling. The state has long resisted gambling legalization efforts, with opposition voicing cultural concerns and fears of increased crime and addiction. Unlike most other states, Hawaii even lacks a state lottery.

Despite these challenges, the Senate voted 15-10 in favor of an amended version of HB 1308 earlier this year, achieving a significant breakthrough. Leading national operators like BetMGM and DraftKings endorsed the bill, sensing a rare market entry opportunity in a state with no competing gambling infrastructure.

The House and Senate Must Reach a Compromise

The House’s dismissal of Senate amendments reflects diverging opinions on two main issues: fiscal framework and player protections. House Finance Committee representatives noted that the proposed upfront licensing fees and tax rates, a $250,000 fee every five years, and a 10% tax on operator revenue may not be high enough to cover the costs of regulating a whole new industry.

One of the biggest concerns for Hawaii is that it has no established regulatory framework for gambling. Lawmakers and observers are concerned that the state’s lack of experience could leave it vulnerable to operator missteps, poor oversight, and enforcement lapses. Establishing a regulator from scratch would require significant funding and staffing expertise, likely necessitating cross-state cooperation.

There are a lot of concerns regarding this measure, and not all of them have been answered.

Sen. Donna Kim

The bill’s fate now depends on a conference committee tasked with finding common ground between the House and Senate versions of HB 1308. These closed-door negotiations are the final opportunity to advance the legislation before Hawaii’s legislative session ends on May 1. While supporters argue that legalizing the industry would allow the state to capture lost revenue, implement protections, and protect consumers, the opposition’s concerns remain valid, casting further uncertainty.