Hawaii Sports Betting Bill Stalls Amid Disagreements

Hawaii Sports Betting Bill Stalls Amid Disagreements

Hawaii were dashed last week when House Bill 1308 collapsed in a conference committee, ending what had been one of the state’s most advanced gambling legislative efforts to date. Despite advancing through both legislative chambers earlier this year, unresolved disagreements over taxation, licensing, and regulatory oversight proved insurmountable by the final deadline.

Introduced by state Rep. Daniel Holt in January, HB 1308 aimed to authorize online sports wagering and daily fantasy sports (DFS), proposing a framework for at least four sportsbooks to operate legally in the Aloha State. While the measure initially cleared the House without finalized tax and licensing provisions—allowing for negotiation with potential operators—it returned from the Senate with key amendments including a 10% gross gaming revenue tax and a $250,000 licensing fee. These last-minute changes, however, became a sticking point.

“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, confirming the bill’s fate after conference negotiations broke down.

Debate Centers on Oversight, Licensing, and Social Risks

In addition to the tax and fee disputes, lawmakers struggled to reach consensus on who would regulate the potential new industry. Initially, the bill assigned regulatory duties to the Department of Consumer Protection, but that department raised viability concerns. The Senate later proposed shifting regulatory oversight to the Department of Law Enforcement. However, that agency also expressed reservations.

Honolulu Police Chief Joe Logan voiced strong opposition to the proposal, stating, “It’s nearly impossible to regulate in a way that truly protects consumers. Our department sees firsthand how gambling-related crime erodes the safety of neighborhoods.”

Concerns over social harms were echoed by other opponents. Les Bernal, national director of advocacy group Stop Predatory Gambling, warned: “If you bring in online gambling, you’re opening a Las Vegas casino in every home, every bedroom, every dorm room, every office that has an internet connection in your state.”

Others, like Rep. Lauren Matsumoto, emphasized the need for caution: “Once you have that toehold, that leads to the foothold that could lead to casinos here in Hawaii… it’s important for us to tread cautiously.”

ers Point to Progress Despite Failure

Despite its defeat, ers of HB 1308 took a more optimistic view, citing the bill’s unprecedented progress through the legislature as a sign of momentum. Lobbyists and legislators now hope the groundwork laid in 2025 will a more viable attempt next year.

“We put our best effort forward,” Holt said. “It is what it is, and we just got to work harder next year, try to answer the questions that the rest of the and the public has and see if we can capture this tax revenue that we much need for our state.”

Cliff Laboy, representing the Hawaii Ironworkers Stabilization Fund, highlighted the significance of forming a working group that includes industry, tourism, law enforcement, and government experts. “There’s never been a bill that went this far in gaming,” Laboy said. “Get the task force, go out there, find out, study, do your due diligence… But Hawaii needs something like this.”

Looking Ahead: Renewed Efforts Anticipated in 2026

With the regular session ending on May 2 and no additional movement expected, Hawaii will remain among the minority of U.S. states without legalized sports betting. Only Utah shares Hawaii’s total absence of legal gambling options—no lottery, horse racing, or commercial casinos.

Nevertheless, industry stakeholders such as FanDuel, DraftKings, BetMGM, and Fanatics are expected to renew their lobbying efforts next year. These major sportsbooks have indicated their interest in the Hawaii market, which—despite its small population—boasts high income levels and a steady flow of nearly three million annual visitors from California, a state not expected to legalize sports betting before 2027.

Boyd Gaming, a Nevada-based casino operator with strong ties to Hawaiian customers, initially opposed the bill during hearings but later signaled interest in launching a mobile sportsbook if legalization ed, underscoring the complex dynamics in play.

Governor Josh Green has expressed openness to legalizing sports betting, stating he would not veto a bill if it included strong consumer protections and safeguards against gambling addiction. His stance is likely to play a central role in shaping future legislative strategies.

While 2025 ends without progress on legal sports wagering in Hawaii, many see this year’s effort as a meaningful step forward—one that may set the stage for a more successful push when lawmakers reconvene in 2026.

Source:

No dice for bill legalizing online sports betting in Hawaii, hawaiinewsnow.com, April 26, 2025

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