In a surprising turn of events, the Hawaii legislature has approved a bill to legalize sports betting and fantasy sports in the state. The bill, which already passed the House, will return to the House for concurrence since some elements of the bill changed. If the House approves, it would go on to Gov. Josh Green to sign.
If Green signs the bill, it will be the first form of legal gambling in the state.
Bill allows at least four Hawaii online sportsbooks
The bill allows for at least four online sports betting operators to obtain a license to operate in the state. Additionally, it would regulate and allow for fantasy sports.
The bill passed despite strong opposition from a number of local government departments at every turn. The final vote on the measure, HB1308, passed by a vote of 15-10. After the vote, a person observing the session chastised the lawmakers.
“Shame on all of you,” they yelled. “You represent the people, not your self interest.”
Over the course of its journey, HB1308 underwent several changes, including a period where the tax rate and licensing fees were elft blank. Before the final vote, lawmakers reinstituted the original proposed tax rate of 10% and licensing fee and $250,000 license fee.
What also changed while the bill was in the Senate was which local government group would oversee and regulate sports betting. Since Hawaii has no other forms of gambling, there were questions about which group would make the most sense to be tasked with the industry.
Who oversees HI sports betting remains a hot topic
The original bill put sports betting under the Department of Consumer Protection, but the department said they were not equipped to handle the task and voiced concerns about sports betting in general. Department of Commerce and Consumer Affairs‘ Director Nadine Ando voiced concerns about feasibility during numerous hearings, noting that between the low licensing fee, taxation and infrastructure that she did not believe this was an endeavor that would even cover its own costs. During debate, the bill was amended to put sports betting under the Department of Law Enforcement.
Yet, the potential influx of cash into state coffers seemed to be the driving force pushing the bill through. Sen. Angus McKelvey spoke in support of the bill and cited the budget as a major concern.
“We need this revenue because of what we are facing in the state of Hawaii from this unprecedent disaster in Washington D.C. It’s not just the blatant up front cuts, it’s the inflation. It’s the tariff wars. Screws, right now, have gone up 70%,” he noted.
Many Senators asked the words of Sen. Sharon Moriwaki about the bill to be entered as their own. During her speech against the bill, Moriwaki questioned the logic of burdening the new head of the Department of Law Enforcement Mike Lambert with another task, particularly when the bill is slated to go into effect on July 1, 2025.
Moriwaki noted that would give the department less than three months to staff up and promolgate regulations for the industry. Additionally, the state tax department said it still need clarity on how suppliers would be taxed that is not currently present in the bill. July 1 is only the date the bill would go into effect, not the date that sports betting is anticipated to be live.
Those details could get ironed out when the bill returns to the House for concurrence.
