Hawaii sports betting bill clears committee, reaches full senate
The tax structure proposed in Hawaii’s latest sports betting legislation involves a 10% tax on Adjusted Gross Revenue (AGR), with allocations dedicated to both problem gambling initiatives and educational programs.
On April 2, proponents of legalized mobile sports betting in Hawaii celebrated a significant milestone as the Senate Ways and Means Committee successfully approved House Bill 1308 (HB 1308), advancing it to the full Senate for further consideration.
The bill garnered a favorable vote of 11-2, although four senators expressed conditional support by voting “aye with reservations.” This vote marks the culmination of a rigorous vetting process, as the Ways and Means Committee is the third and final Senate committee to endorse the bill. Previous approvals were obtained from both the Economic Development and Tourism Committee and the Commerce and Consumer Protection Committee.
Despite the bill’s advancement, it faces considerable opposition from several influential groups within the state. Notably, the Hawaii Attorney General’s office submitted formal testimony outlining concerns related to problem gambling and the potential for changes in fantasy sports frameworks to enable “unregulated and unlicensed gambling” activities across the state.
Revisiting Legislative Provisions
When initially presented, HB 1308 moved through the lower chamber of the state legislature without specified licensing fees or tax structures. However, these crucial elements were addressed during the Ways and Means Committee hearing. The committee proposed an initial licensing fee of $250,000, alongside a supplier license fee of $10,000, applicable for both initial applications and renewals.
The reinstatement of the 10% tax rate on Adjusted Gross Revenue—previously removed through amendments in the House—positions Hawaii among the states with the most competitive tax rates on commercial wagering. Of particular note, 7% of the tax revenue will be allocated to a dedicated fund aimed at problem gambling prevention and treatment. The additional 7% is earmarked for educational initiatives across the state, reflecting a dual commitment to promoting responsible gambling while improving community resources.
For a comprehensive review of the developments surrounding this important legislation, read the full story here.
Casino Reports is an independently operated publication committed to delivering insightful coverage of the regulated US online casino and iGaming sectors. We provide news, features, and original analysis on industry trends, legislative changes, regulatory updates, and more.
