Hawaii’s push to legalize on-line sports activities betting is gaining momentum as HB 1308 advances to the House ground following approval from the Finance Committee. However, the proposal has not secured unanimous help, with some lawmakers voicing considerations over regulation, tax charges, and potential social dangers.
On February 24, the House Finance Committee permitted HB 1308 with a 12-3 vote, though six members who supported it did so “with reservations.” Prior to the vote, Committee Chair Kyle Yamashita launched amendments to make the invoice extra palatable, together with eradicating the proposed 10% tax price and $250,000 licensing price for additional overview. Yamashita emphasised that discussions on sports activities betting regulation ought to proceed, calling the invoice “a work in progress.”
Meanwhile, a companion invoice, SB 1569, is scheduled for a Senate Ways and Means Committee listening to on Wednesday, marking one other vital step in Hawaii’s legislative course of.
Amendments to Licensing and Tax Structure
One of the main debates surrounding HB 1308 has been the monetary framework for taxation and licensing. Some lawmakers expressed considerations that the initially proposed $250,000 licensing price for a five-year interval was too low, given the multi-billion-dollar sports activities betting business.
Rep. Sue L Keohokapu-Lee Loy acknowledged,
“I would love to see that license fee go up exponentially.”
Nadine Ando, Director of the Department of Commerce and Consumer Affairs, additionally questioned whether or not the proposed construction would generate sufficient funds to control the business successfully. With solely 4 licenses out there, the state would accumulate simply $200,000 yearly in charges, an quantity Ando described as inadequate to supervise the business correctly.
With these considerations in thoughts, lawmakers eliminated the tax price and licensing price from the bill, permitting for additional revisions earlier than finalization.
Rep. Daniel Holt, the invoice’s sponsor, supported the amendments, stating:
“I personally don’t think we’re going to be creating a bunch of new gamblers. We’re just going to be collecting the tax revenue from those who already choose to participate in this form of entertainment. The fee’s got to go up, tax has got to go up.”
Support and Opposition Perspectives
As in earlier committee hearings, unions and sportsbooks expressed robust help for the invoice, citing financial advantages and the potential to control an already-existing offshore market. Representatives from BetMGM, DraftKings, and the Sports Betting Alliance (SBA) backed the proposal, arguing that legalizing sports activities betting would enhance tax income and supply regulation enforcement with instruments to fight unlawful playing.
The SBA, which incorporates BetMGM, DraftKings, Fanatics Sportsbook, and FanDuel, projected that Hawaii’s annual tax income may vary between $10-$20 million based mostly on a ten% tax price. In comparability:
- Maine (pop. 1.4M): Launched authorized sports activities betting in November 2023, recording a $550 million deal with in its first 12 months and $6 million in tax income (at a ten% tax price).
- West Virginia (pop. 1.77M): Has generated $2.8 billion in bets and $25.9 million in tax income since launching digital sports activities betting in 2019.
Proponents additionally highlighted the financial ripple results past direct tax income. BetMGM’s Director of Government Affairs, Jeremy Limun, pointed to elevated foot site visitors at bars, eating places, and different hospitality venues, linking on-line sports activities betting with broader financial advantages.
However, opponents—together with state officers and downside playing advocacy teams—warned of potential social penalties, corresponding to:
- An enhance in downside playing and addiction-related bankruptcies
- Financial hardship for weak residents
- Potential hyperlinks between playing and crime
The invoice consists of provisions to allocate funds for downside playing prevention and remedy, however considerations stay over the long-term impression on Hawaii’s residents.
What’s Next for the Bill?
With HB 1308 advancing to the complete House chamber, the following step shall be a ground vote, although a date has not but been scheduled. Meanwhile, the Senate model (SB 1569) is about for committee dialogue on Wednesday, with its progress carefully watched.
The Hawaii legislative session runs till May 2, 2025, with a key March 6 deadline for payments to move from one chamber to the opposite. Whether lawmakers will attain a consensus on taxation, licensing charges, and regulatory oversight stays a central challenge in the weeks forward.
