Hawaii Sports Betting Bill Gains Momentum With Green's Backing

Hawaii is inching closer to legalizing mobile sports betting, a move that would mark a significant shift for one of the few U.S. states without any form of legal gambling. House Bill 1308, introduced by Representative Daniel Holt, is currently undergoing final negotiations in a legislative conference committee composed of lawmakers from both the House and Senate.

While both chambers have ed different versions of HB 1308, the current process seeks to reconcile those differences ahead of the May 2 legislative deadline. Central to the discussions are disagreements over regulatory oversight. Initially, the Department of Consumer Protection was tasked with supervision, but concerns raised by that agency and the Department of Commerce and Consumer Affairs prompted the Senate to shift regulatory duties to the Department of Law Enforcement.

The bill, if enacted, would establish a mobile sports betting market with a minimum of four operators. Among the potential market entrants are industry giants like FanDuel, DraftKings, BetMGM, and Fanatics, all of which have ed the measure through lobbying efforts. In addition to mobile sports betting, the legislation includes provisions to legalize and regulate daily fantasy sports.

Licensing and Tax Structure Still Under Review

A critical issue still under debate is the licensing fee and tax structure. The most recent version, HB1308 HD3 SD2 sets a $250,000 licensing fee for a five-year operator license, with suppliers paying $10,000. Operators would be taxed at a minimum rate of 10% on gross gaming revenue. However, the Sports Betting Alliance—a group representing sportsbooks—has advocated for higher fees, proposing $500,000 for operator licenses and $20,000 for suppliers to better cover regulatory expenses.

Despite the relatively modest tax and fee proposals, Hawaii could become an attractive market due to its high-income population and potential crossover with California tourists, approximately three million of whom visit the islands annually.

Governor Signals Openness to Legalization

Governor Josh Green has expressed a willingness to allow the bill to into law if lawmakers include adequate consumer protections. “As long as there’s some safeguards with gambling addiction services and so on, if the Legislature goes to the full way and es it, I’ll likely let it become law,” he told Hawaii News Now.

Green also referred to polling that indicates growing public acceptance of sports betting. According to the governor, “The world’s changing quite a lot and what people said in our survey was if you spend the revenues in a good place like on Hawaiian Home Lands housing or housing for the workforce, a lot of people ed it.” Though Green described it as “our survey,” his office clarified that the polling was conducted by a private entity and that they do not have the data available.

Casino Study Proposal Sparks Heated Debate

Parallel to the progress of HB 1308, a separate legislative debate is ongoing around Senate Concurrent Resolution 121, which would establish a working group to explore the potential for casino gaming in Hawaii. The resolution includes input from sectors such as tourism, law enforcement, and development. Advocates argue that a casino could provide economic benefits and help fund the redevelopment of the Aloha Stadium entertainment district.

Rep. Daniel Holt emphasized the economic upside, saying, “It’s possible to increase our job count by 6,000 jobs and a benefit of $250 million plus to our economy.” However, critics like Rep. Andrew Garrett questioned the motives, arguing, “When you need a casino to make your stadium pencil out, that’s not planning. That’s panic. That’s a bailout dressed up as a policy discussion.”

Garrett further challenged the resolution’s intent, stating, “You’re not just studying the issue. You’re scripting the outcome. This isn’t research, it’s a rehearsal.” Holt countered, “This is not a bailout to Aloha Stadium, Madam Speaker, this is to study it.”

The resolution ed despite 14 voting against it, and a final version will be negotiated between the House and Senate.

As lawmakers work through the final stages of both sports betting legislation and the casino study proposal, Hawaii appears poised to move closer to ing the list of U.S. states embracing regulated gambling.

Source:

Gambling bill still roiling lawmakers while governor keeps open mind, hawaiinewsnow.com, April 22, 2025.