Hawaii House Passes Online Sports Betting Bill

• The Hawaii House of Representatives approved an online sports betting bill
• The bill will only legalize online sports betting in the state
• The measure passed by a two to one margin 35-10 vote

Mahalo! A Hawaii sports betting bill has advanced farther than it ever has in the state legislature.

The Hawaii House of Representatives approved Rep. Daniel Holt’s bill, HB 1308, to legalize online sports betting in the Aloha State by a 35-10 vote.

“This is great news for Hawaii. Sports betting is already happening across our islands — it’s just happening through bookies and unsafe offshore websites that don’t have any consumer protections and allow minors to bet. With this legislation, we can join the 38 other states that have created regulated, consumer-protected sports betting markets and create millions in revenue for our state,” Holt said in a prepared statement to Sports Betting Dime.

Work Still to Be Done

Holt’s bill calls for at least four online sports betting licenses to be awarded to operators in the state. Originally, it listed a license fee at $250,000 to acquire and a 10% tax rate on adjusted gross sports betting revenue.

However, the sports betting license fee and tax rates have yet to be fully decided. Finance Committee Chair Rep. Kyle T. Yamashita (D-12) last week amended the bill to leave the potential tax rate and licensing fee blank, as several members of the committee believed they were too low. Holt agreed and the bill was amended to allow for further discussion on the rates.

“The license fee is rather low for an industry that makes billions of dollars. I’d like to see this license fee go up exponentially,” Rep. Sue L. Keohokapu-Lee Loy (D-2) said at the hearing.

Holt did say during the House hearing that fiscal estimates show Hawaii can bring in nearly $20 million annually through the new form of gaming.

While the rates are still blank, the legislation is the farthest an online sports betting bill has been advanced in the Hawaii legislature.

The bill now moves to the Senate.

Challenges Still Remain

Despite the approval, several Hawaiian lawmakers were vociferous in their opposition to the bill.

“Maybe I’m being overly dramatic to make a point, but I believe there will be serious consequences that will reshape our culture and history. I truly pray and hope that we do not go down this path by opening this door,” Rep. Garner M. Shinzu (R-32) said.

Gambling and sports wagering, he said, is not a good career choice or means to make a living, he said.

Rep. David Alcos III (R-41) said the tax dollars that come in from gambling can be considered “dirty” and the less Hawaii is like than Las Vegas the better.

“I haven’t seen one person who has made a living, or has moved up, because they made so much more money (from sports betting). Most of my friends went the opposite way. This bill to legalize gambling is a question. Do we want this kind of money in the state of Hawaii to fix our roads? Sometimes, taking care of our families more ethically might be the better choice,” he said.