Hawaii Lawmakers Consider Legalizing Online Sports Betting Ahead of Super Bowl Week

Hawaii lawmakers are evaluating the possibility of legalizing online sports betting, an industry that has remained unregulated in the state. Proponents argue that taxation on legal sports betting could generate revenue to fund gambling addiction programs and combat illegal betting activities.

Push for Legalized Sports Betting Gains Momentum

Representative Daniel Holt, a Democrat from Kalihi, has been a consistent advocate for legalizing gaming in Hawaii. Despite introducing multiple gaming bills over the years, Hawaii remains one of just two states in the U.S. where all forms of gambling are prohibited. Holt asserts that sports betting is already prevalent through illicit channels, and the state should capitalize on the industry.

“These people are already out there sports betting through illegal methods,” Holt stated. “This would be an avenue for us to collect the tax revenue.”

The proposal has garnered from labor organizations. Cody Sula, representing the Iron Workers Stabilization Fund, highlighted that many Hawaii residents already participate in sports betting but that the money is being spent outside the state.

“I know people who’s already gambling or wagering or whatever they do on their phone, but the money is not staying here, it’s going elsewhere,” he noted.

Concerns and Industry Perspectives

At a recent hearing, no one publicly opposed House Bill 1308. However, the Honolulu Police Department submitted concerns in writing, and Boyd Gaming, a company known for organizing Las Vegas gambling excursions, questioned the reliability of projected tax revenues from sports betting.

On the other hand, representatives from the online gaming sector, including BetMGM’s government affairs director Jeremy Limun, argued that legalized platforms offer a safer alternative to offshore gambling sites.

“While d as ‘social sports books,’ these platforms are anything but,” Limun stated. “And run multimillion-dollar marketing campaigns, including through social media and celebrity influencers, that often target teens and young people.”

The proposed legislation aims to allocate gaming tax revenues toward enforcing laws against illegal gambling and ing addiction treatment programs. Holt emphasized that established operators like DraftKings and MGM implement safeguards to prevent excessive losses, unlike unregulated markets.

“There’s a lot of verifications you need to go through,” Holt explained. “Illegal market there are no verifications, and you’re often afforded credit that you may not be able to come up with if you lose.”

Governor and Lawmakers Weigh the Proposal

Governor Josh Green expressed openness to the idea of sports betting legalization but stressed the need for proper consumer protections.

He stated, “(He) s careful exploration of sports wagering in Hawaii, provided that proper safeguards are in place to prevent abuses.”

Holt welcomed the governor’s interest, saying, “I appreciate the governor and the istration having this discussion and taking a serious look at the bill.”

The House Committee on Economic Development and Technology has shown unanimous for the proposal. Republican Minority Leader Lauren Matsumoto, who previously opposed the measure, altered her stance and voted in favor with some reservations.

“I just want to make sure we’re looking at the guardrails that we put in, the regulations we put in as we move forward,” Matsumoto stated.

Despite the early , the bill must still through two additional House committees, gain approval from the full Senate, and secure the governor’s signature before it can become law.

Source:

”Online sports betting moves ahead in Hawaii House”, cdcgaming.com, February 03, 2025.