Hawaii Set to Legalize Sports Betting and Fantasy Sports
Contrary to most expectations, Hawaii has moved one step closer to legalizing both sports betting and fantasy sports.
LISTEN TO THIS ARTICLE:Bill HB1308 has cleared the state Senate and will now return to the House for concurrence due to amendments made during its progression. Should the House agree to the revised version, the bill will head to Governor Josh Green’s desk for approval. If fantasy and sports betting bills are signed, it will be the first time that any form of gambling has been legalized in Hawaii.
Bill Would Allow at Least Four Sportsbooks
Under HB1308, at least four online sportsbooks would be eligible to obtain operating licenses. The legislation also includes provisions for the regulation and legalization of fantasy sports.
Despite facing consistent resistance from various local government entities throughout its legislative journey, the bill passed with a narrow 15-10 vote in the Senate. Tensions were high during the session, with one attendee shouting, “Shame on all of you. You represent the people, not your self-interest.”
The bill underwent several alterations, including a phase when licensing fees and tax rates were temporarily left undefined. Prior to the final vote, lawmakers reinstated the proposed 10% tax rate and a $250,000 licensing fee.
Regulatory Oversight Still Unsettled
A major point of contention has been determining which department will oversee Hawaii’s sports betting industry, as the state does not currently have a gambling infrastructure. Initially, the bill assigned oversight to the Department of Consumer Protection. However, the department argued it lacked the resources and expertise for such a role.
Nadine Ando, Director of the Department of Commerce and Consumer Affairs, was skeptical about the bill during public hearings, citing doubts that projected revenue would even offset operational costs.
Eventually, lawmakers amended the bill to shift regulatory authority to the newly formed Department of Law Enforcement.
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Revenue Concerns Driving Legislation
Supporters of the bill regularly cite the financial benefits it could bring to the state. Senator Angus McKelvey also said that Hawaii’s strained budget, which has been made worse by national economic pressures, is a key reason to support the bill.
We need this revenue because of what we are facing in the state of Hawaii from this unprecedented disaster in Washington D.C. It’s not just the blatant up-front cuts, it’s the inflation. It’s the tariff wars. Screws, right now, have gone up 70%.
However, there are still worries about the timeline and preparedness for implementation. Senator Sharon Moriwaki questioned assigning the Department of Law Enforcement an entirely new industry to regulate, especially with the law scheduled to take effect on July 1, 2025. She pointed out that the department would have less than three months to build staffing and establish a framework for gambling regulation.
The state’s tax department also said that there are uncertainties about how supplier taxation would be handled, with those specifics still missing from the bill. However, lawmakers may address these unresolved issues when the House reviews the updated version of the bill for concurrence.
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