Hawaii Senate Rejects Online Sports Betting Bill
The Hawaii Senate has rejected a bill that sought to legalize online sports betting in the state, just two days after a similar bill advanced in the House. The decision was made after a Senate committee opted to defer the proposal, effectively halting its progress.
LISTEN TO THIS ARTICLE:Senate Bill 1569, which served as the companion bill to House Bill 1308, had previously been approved with amendments in early February by the Senate Economic Development and Technology Committee through a unanimous 5-0 vote. Despite this initial approval, the proposal was dismissed without discussion at a Commerce and Consumer Protection decision-making hearing held on Wednesday.
Related: New Online Sports Betting Bill Introduced in Hawaii SenateDuring the session, Chair Donovan M. Dela Cruz stated that after reviewing the testimony, the recommendation was to defer the bill. That brief statement marked the end of the discussion on the matter, signaling the Senate's lack of interest in advancing the legislation.
Although the bill had gained traction in the House, the decision by the Senate committee suggests that the effort to legalize online sports betting in Hawaii may be unlikely to progress further. The measure, which aimed to regulate online sports wagering under the oversight of the state Department of Business, Economic Development, and Tourism, would have taken effect on July 1, 2025. Under the proposed law, at least four online sports betting platforms would have been licensed and subjected to a 10% tax, while fantasy sports would have been legalized separately under their own regulatory framework.
Support for the bill came from multiple stakeholders, including Hawaii workers' unions, who argued that sports betting would generate new revenue for the community. The Sports Betting Alliance, a coalition led by major sportsbooks, also advocated for the bill, emphasizing the benefits of legal oversight and the economic impact that sports betting has had in other states where it has been implemented.
Despite this support, the proposal faced strong opposition from multiple quarters. Concerns were raised about the actual revenue-generating potential of sports betting in Hawaii, and state agencies, including the Hawaii Department of the Attorney General, warned about the risks associated with problem gambling and other potential societal harms. Other governmental departments expressed doubts over whether the provisions in the bill had been adequately evaluated before being proposed.
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The House version of the bill faced its own difficulties, encountering opposition at multiple stages of review. HB 1308 barely made it out of the House Judiciary & Hawaiian Affairs Committee, advancing by a narrow 6-4 vote.
The bill later passed through the House Finance Committee with a 12-3 vote, but half of those who voted in favor did so with reservations, acknowledging that the bill was still a work in progress. The bill only reached the full House after amendments removed its proposed licensing fee and tax rate, demonstrating the extent of hesitation surrounding the measure.
Sports betting legislation in Hawaii has struggled to gain momentum, and SB 1569 and HB 1308 are not the only proposals currently under review. Other sports betting and gaming expansion bills have been introduced this legislative session, though none have advanced beyond their initial filings.
One such proposal, SB 1572, sponsored by Sen. Kim Decoite, would allow both retail and online sports betting but exclude daily fantasy sports. Another measure, SB 1507, seeks to legalize online casino games and poker while omitting sports betting. A separate bill, SB 373, aims to legalize daily fantasy sports only.
Despite the introduction of multiple gaming-related bills, none have made progress since their initial filings.
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