The path to legalization for HB1308, the measure to legalize online sports betting and fantasy sports in Hawaii, is a little more complicated after the House voted to disagree with the Senate’s version of the bill. The Senate passed the amended sports betting bill earlier this week.
Several bills will go to conference in Honolulu
HB1308 was one of several bills that advanced out of the House only to be amended before advancing out of the Senate. During a brief session on Thursday, House members voted to disagree with all Senate-amended bills that had been returned to the chamber. The Senate also communicated that it voted to disagree with amended bills the House sent over as well. April 10 marked the deadline for the chambers to disagree with any amended legilsation.
Sine die for this year’s legislative session is May 1, which gives the conference committee, which will include lawmakers from both chambers, a little over two weeks to iron out a compromise.
The current version of the bill imposes a $250,000 fee for a five-year operator license as well as a 10% tax rate on a minimum of four online sportsbook operators in the state. Critics of the bill, including Sen. Sharon Morikawa noted that the Department of Taxation was hoping for more information on the supplier side of the business, such as expected licensing fees. The current draft of the bill stipulates a $10,000 fee for supplier licenses.
Sportsbook lobbying group advocates higher fees
In written testimony to the legislature, even the pro-sportsbook lobbying group, Sports Betting Alliance, proposed a higher license fee than $250,000, suggesting that $500,000 would better cover the regulatory costs associated with setting up oversight under the Department of Law Enforcement. The group also suggested doubling the supplier license fee to $20,000.
The House version of the sports betting bill passed with blank spaces in lieu of the initial proposed fee and tax rate, and debate in the House indicated there was a desire to negotiate on that front.
The home of sports betting also changed in the Senate version of the bill, moving from the Department of Commerce and Consumer Affairs to the Department of Law Enforcement after the former repeatedly testified they were not equipped to regulate such a venture.
