A bill to legalize and regulate at least four online sportsbooks in Hawaii narrowly advanced out of the House Judiciary & Hawaiian Affairs Committee.
HB1308 passed by a 6-4 vote with two committee members noting they have reservations about the measure. Many government groups from Hawaii appeared at the hearing on the measure and expressed concerns and opposition, including the Prosecuting Attorney’s office in Honolulu and the Attorney General. The bill advanced out of the Economic Development and Technology Committee earlier this month.
AG’s office suggests Hawaiians should stick to friendly social wagering
In written testimony, the AG noted there is a carve out for poker nights, Super Bowl party betting pools and other social wagering. With that in mind, they argued if Hawaiians want to sports bet, they can do so with friends and family without concern.
“ber. If conducted in this manner, “sports wagering” can already be enjoyed legally by Hawaii residents, and the Department has no concerns about such activity. Once gambling starts to involve large-scale operations, business corporations, or other money-making enterprises, however, the Department is extremely concerned about the known risks and societal costs associated with legalized gambling,” testimony stated.
“With so many issues facing our state, such has lack of affordable housing, homelessness, drug and alcohol addiction, we should be focused on addressing these real issues that impact our residents instead of bringing in legalized sports wagering and gambling that will exacerbate the problems already facing our community,” the letter from Department of the Prosecuting Attorney of the City and County of Honolulu argued.
DraftKings, BetMGM focused on curbing offshore wagering
The committee did respond to several concerns with the bill regarding wording and punishment for unlicense gambling violations, but did not deviate from the proposed 10% tax rate on sports betting. The Department of Budget and Finance suggested upping the rate to something in line with liquor and cigarettes but otherwise had no issues with the bill.
BetMGM and DraftKings appeared remotely to testify in favor of the bill and the Sports Betting Alliance contributed written testimony as well, emphasising the need to curb the black market and bring back customers via regulated options. These comments were echoed by one of the bill sponsors, Rep. Chris Todd, who was also a member of the committtee.
“I think, generally speaking, the legislature is very good at anticipating future negative impacts but not great at taking a look at the current negative impacts that prohibition, not just on gambling, but on a variety of issues currently has,” he said. He did acknowledge the possibility that legalization might not be “net positive”, a concern expressed by multiple committee members.
Federal funding cuts influenced committee’s decision
“In my career I have consistently voted against gambling,” Committee Chair Rep. David A. Tarnas stated. “This is the first time I am moving forward a bill that establishes gambling and the reason why I am doing it is that we are in a fiscal crisis.”
Tarnas refernced substantial cuts from the federal government and the need for the state to keep funding these programs.
“I’m trying to be creative and move forward with legislation in a reasonable and deliberative way. I understand there are issues with this, but that’s my reason to move this forward,” he added.
The bill next moves to the House Finance Committee for consideration. The companion Senate measure advanced out of the Senate Economic Development and Technology Committee earlier this month and currently sits ith the Senate Committee on Commerce and Consumer Protection.
