The Hawaii house passes digital sports betting bill
Despite ongoing concerns surrounding legal sports betting, the State House of Hawaii has advanced a bill permitting digital platforms for consideration by the Senate.
Following its passage through various House committees with certain legislators expressing approval “with reservations,” House Bill 1308 garnered approval on March 4, receiving 16 votes against it. This timely passage met the pivotal crossover deadline of March 6.
Before the vote, detractors highlighted issues such as potential revenue diversion to external operators, the risk of increased gambling addiction, and threats to the integrity of sports. One lawmaker likened wagering to dangerous substances like heroin and fentanyl, asserting that any revenue generated from legalized sports betting would constitute “dirty” money.
A complementary measure, Senate Bill 1569, was deferred without discussion by the Senate’s Consumer Protection and Ways and Means Committee on February 26, leaving ambiguity about its implications for other sports wagering proposals, including HB 1308.
Representative Daniel Holt, the chief proponent of sports betting legislation across several sessions, expressed optimism as this marks the first time a measure has progressed out of the House.
Tax and Licensing Fees: A Crucial Dialogue
During his remarks on Tuesday, Holt stated he believed he had finally “got it right.” His proposal envisions the establishment of four authorized digital platforms without including physical sportsbooks. Initial provisions for a 10% tax rate and a $250,000 application fee were ultimately stripped out by the House Finance Committee, which deemed them significant hurdles in the negotiation process.
The Senate now holds the discretion to reinstate these provisions or delegate the final decision to a future regulatory body. Taxation structures frequently see modifications throughout the legislative process; for instance, Georgia lawmakers recently adjusted a proposed 20% tax rate to 24% during committee discussions.
The original bill proposed application and renewal fees set at $250,000 (£197,761/€238,712). Representative Sue L. Keohokapu-Lee Loy remarked in committee that such a fee seemed disproportionately low for an industry generating billions in revenue, suggesting that it should be substantially increased.
Georgia: The Only State Currently Advancing
Hawaii remains one of eleven U.S. states that have not legalized sports betting since the repeal of the Professional and Amateur Sports Protection Act in 2018. It is among at least eight states with proposals being considered in the 2025 legislative session.
In Mississippi, lawmakers recently halted a bill aimed at expanding digital betting, while similar legislation faces challenges in Minnesota. Georgia, however, stands out as the only state making significant progress, as the General Assembly works diligently to pass sports betting legislation ahead of an imminent crossover deadline.
With the legislative session scheduled to adjourn on May 2, Hawaii’s Senate now has a critical two-month window to evaluate HB 1308 and potentially shape the future of sports betting in the state.
