Just 48 hours after a bill to legalize online sports betting in Hawaii was advanced to the full House, its companion bill stalled in a Senate committee after members decided to defer the proposal.
SB 1569, the companion to HB 1308, was passed with amendments by a vote of 5-0 at the Senate Economic Development and Technology earlier in February.
However, at a Commerce and Consumer Protection decision-making hearing on Wednesday, it was dismissed without hesitation.
“After reviewing the testimony, the recommendation is to defer,” read Chair Donovan M. Dela Cruz from the document in front of him. That was the full extent of the reference to the bill at the session.
Although it clearly has a level of support in the House, the lack of desire to move it forward in the Senate would appear to leave the measure to sanction online sports wagering in the Aloha State on life support.
Bills met several concerns
The pair of bills would legalize both sports betting and fantasy sports under the regulatory oversight of the state Department of Business, Economic Development and Tourism, effective July 1, 2025. A minimum of four online sports betting platforms would be licensed and taxed at 10%, while fantasy sports would be legalized under their own vertical.
The legislation was backed in both House and Senate hearings by Hawaii workers’ unions, who pointed to the revenue creation opportunities for the community, and by the sportsbook-led Sports Betting Alliance (SBA), who noted the benefits of bringing gambling under state oversight and the knock-on economic effects sports betting has brought in other states.
However, it faced opposition from several corners, including doubts over the revenue-creation potential. It was also met with pushback from the Hawaii Department of the Attorney General and various other governmental departments over potential problem gambling and other societal impacts, as well as concerns that the bill’s provisions had not been sufficiently considered.
Even though the House version of the bill progressed through multiple committees, it was met with reservations at every stage.
HB 1308 only narrowly advanced out of the House Judiciary & Hawaiian Affairs Committee by a 6-4 vote earlier this month. In Monday’s House Finance Committee hearing, it was approved 12-3 but half of the yes votes were with reservations and it was called “a work in progress.” It was only moved to the full House after amendments had scrubbed both the bill text’s suggested licensing fee and its tax rate.
Other Hawaii proposals remain stationary
This pair of bills aren’t the only sports betting gaming expansion proposals that have been filed in Hawaii this legislative session.
A separate Senate bill introduced by SB 1569 co-sponsor Sen. Kim Decoite, SB1572, would legalize both retail and online sports betting but not DFS. Another, SB 1507, would legalize online casino games and poker, but not sports betting. Yet another, SB 373, would legalize DFS only.
None of those other bills have made any progress since being filed.
