Hawaii Sports Betting Bill Advances Despite Strong Opposition

A bill proposing the legalization and regulation of at least four online sportsbooks in Hawaii has narrowly advanced out of the House Judiciary & Hawaiian Affairs Committee. With a 6-4 vote, two expressed reservations about the measure, reflecting the divisive debate surrounding sports betting in the state.

The bill now heads to the House Finance Committee for further consideration. Meanwhile, the companion Senate bill continues its path through the Senate Committee on Commerce and Consumer Protection.

Government Groups Share Their Concerns

During the committee hearing, multiple government groups, including the Honolulu Prosecuting Attorney’s Office and the Attorney General, voiced concerns. The Attorney General’s office argued that residents of Hawaii already have access to social wagering, such as poker nights, Super Bowl betting pools, and friendly wagers, without requiring legalization.

“If conducted in this manner, ‘sports wagering’ can already be enjoyed legally by Hawaii residents, and the Department has no concerns about such activity. Once gambling starts to involve large-scale operations, business corporations, or other money-making enterprises, however, the Department is extremely concerned about the known risks and societal costs associated with legalized gambling,” the AG’s office stated in written testimony.

The Honolulu Prosecuting Attorney’s Office also raised concerns, stating that legalized gambling would exacerbate existing social problems such as affordable housing shortages, homelessness, and addiction issues.

Industry Advocates Highlight Offshore Betting Risks

Despite opposition, DraftKings, BetMGM, and the Sports Betting Alliance submitted testimony in of HB1308, stressing the need for a regulated market to curb offshore betting.

The committee debated issues related to penalties for unlicensed gambling operations, but did not alter the proposed 10% tax rate on sports betting revenue. The Department of Budget and Finance recommended increasing the tax rate to align with those imposed on liquor and tobacco, but otherwise had no objections.

One of the bill’s sponsors, Rep. Chris Todd, ed the effort, stating:

“I think, generally speaking, the legislature is very good at anticipating future negative impacts but not great at taking a look at the current negative impacts that prohibition, not just on gambling, but on a variety of issues currently has.”

While acknowledging potential downsides, Todd stressed the importance of addressing unregulated betting markets.

Committee Chair Rep. David A. Tarnas, who has historically voted against gambling bills, explained his unexpected :

“This is the first time I am moving forward a bill that establishes gambling and the reason why I am doing it is that we are in a fiscal crisis.”

Lawmakers Revisit Sports Betting Amid Super Bowl Discussions

Earlier during the month, as Super Bowl week approached, Hawaii lawmakers considered the prospect of legalizing online sports betting, a concept that remains unregulated in the state. Proponents argue that tax revenue from legal sportsbooks could fund gambling addiction programs and combat illegal betting.

One of the strongest advocates, Representative Daniel Holt, has repeatedly pushed for gaming legislation in Hawaii. Despite introducing multiple bills, Hawaii remains one of only two U.S. states where all forms of gambling remain illegal, alongside Utah. Holt pointed out that residents already participate in sports betting via offshore platforms, meaning the state loses potential tax revenue.

Labor organizations, such as the Iron Workers Stabilization Fund, also backed legalization, arguing that money is already flowing out of the state due to illegal betting markets. However, Boyd Gaming, a company known for organizing Las Vegas gambling excursions, expressed skepticism over projected tax revenues.

Industry representatives, including BetMGM’s government affairs director Jeremy Limun, testified that regulated sportsbooks provide a safer alternative to offshore sites. The proposed legislation would allocate tax revenues toward illegal gambling enforcement and gambling addiction treatment programs.

Governor Josh Green expressed an open stance toward sports betting legalization but emphasized the need for proper consumer protections. While the House Committee on Economic Development and Technology unanimously ed the bill, it must still two additional House committees, secure Senate approval, and obtain the governor’s signature before becoming law.

Source:

Hawaii sports betting bill narrowly advances out of committee, sbcamericas.com, February 13, 2025