Hawaii sports betting bill goes to conference committee

The deadline looms for Hawaii’s conference committee to reach a consensus on the digital sports betting bill.

Hawaii’s ambitious digital sports betting initiative, encapsulated in House Bill 1308, has encountered a critical delay. Following a surprising journey through both the House and Senate, the bill will now move to a conference committee for resolution after the House rejected an amended version that had been approved by the Senate.

Throughout its progression in the Senate, the proposed legislation initially lacked defined tax rates and application fees, both of which were controversially introduced on the Senate floor. Additionally, changes were made to designate the regulatory authority that would oversee operations outlined in the bill.

If enacted, HB 1308 would facilitate statewide digital sports betting through a minimum of four online platforms, notably without the inclusion of retail betting locations. This approach reflects current trends favoring digital engagement over traditional brick-and-mortar establishments.

Originally, the bill proposed a 10% tax rate alongside a $250,000 application fee, but the House’s finance committee eliminated both provisions. Representative Sue L. Keohokapu-Lee Loy expressed concerns about the adequacy of the application fee, stating, “In an industry generating billions of dollars, this amount appears insufficient. I advocate for a significantly higher licensing fee.”

Is the Tax Revenue Projection Viable?

Debate surrounding tax revenue projections intensified during the finance committee’s discussions. Jeremy Limun, head of government affairs at BetMGM, estimated that Hawaii—home to a population of approximately 1.45 million—could anticipate annual tax revenues ranging from $10 million to $20 million based on the proposed 10% tax rate. In comparison to similarly sized states, this projected revenue appears robust; however, the tax rate is relatively low when evaluating current market trends.

While digital sports betting operators may favor a 10% tax rate, it is important to note that many states have recently implemented higher initial rates, with a trend towards increasing these rates post-launch. This approach often reflects a desire to maximize state revenue while balancing industry growth and sustainability.

Hawaii’s legislative session is scheduled to conclude on May 2, making it imperative for the conference committee to reach an agreement swiftly to facilitate potential implementation.

For comprehensive coverage on the developments surrounding Hawaii’s digital sports betting landscape, visit Casino Reports, your independent source for trustworthy insights into the regulated U.S. online casino and iGaming industry.