The effort to bring legalized sports betting to Hawaii fell short this week.
House Bill 1308 failed to progress in a conference committee, ending Rep. Daniel Holt’s attempt to bring online sports betting to the Aloha State. HB 1308 failed to pass a conference committee due to disagreements regarding the measure’s amendments.
The piece of legislation stalled in a conference committee due to disagreements between House and Senate members regarding the measure’s tax rate and licensing fees.
“We just haven’t come to an agreement on the details with number of operators, tax rate, fees and those kinds of things,” Holt told KHON2.
In January, Holt introduced HB 1308, which would bring least four online sportsbooks to operate in Hawaii in addition to authorizing daily fantasy sports. It advanced out of the House earlier this year before advancing out of the Senate with amendments.
An iteration of HB 1308 did not include a tax rate or licensing fees as lawmakers sought to negotiate the two issues with operators but the latest version of the bill imposed a 10% tax rate with a $250,0000 licensing fee. Under the bill, licenses were valid for five years.
The Sports Betting Alliance also suggested licensing fees could be higher. The pro-sportsbook lobbying group suggested in a written testimony to the Hawaii legislature that it should set its licensing fee at $500,000 to cover regulatory and administrative costs.
The Ironworks Stabilization Fund also suggested a tax rate between 15% to 20%.
Hawaii regulation sparked concerns
HB 1308 also sparked disagreements regarding what department would regulate wagering.
The original version of HB 1308 called for the Department of Consumer Protection to oversee and regulate sports betting but the department expressed viability concerns.
The Senate’s version of HB 1308 proposed regulation from the Department of Law Enforcement. The department was considered after the Department of Commerce and Consumer Affairs also voiced concerns regarding its ability to provide proper regulation.
Hawaii’s Department of Law Enforcement is also concerned about gambling regulation.
“It’s nearly impossible to regulate in a way that truly protects consumers,” said Honolulu Police Department Chief Joe Logan in a statement opposing the bill. “Our department sees firsthand how gambling-related crime erodes the safety of neighborhoods.”
Residents and visitors of Hawaii will now have to wait until 2026 for lawmakers in the state to consider sports betting and DFS but lawmakers are poised to make another legislative attempt as Gov. Josh Green said he would not veto a sports betting bill with protections.
Green has vowed to support a measure that provides safeguards for gambling addiction.
Lawmakers are now looking ahead to 2026 in hopes of drafting a new online sports betting and DFS measure that meets the standards of both legislative chambers and Green.
