Hawaii On Cusp to Legalize Online Sports Betting, Daily Fantasy Sports

• The Hawaii Senate today approved a bill to legalize online sports betting
• The bill was previously approved by the House in March
• It will allow up to four online sports betting operators if signed into law

Mahalo! Hawaii is on the cusp of becoming the 40th state to legalize sports betting.

The Senate today approved Rep. Daniel Holt’s bill, HB 1308, to legalize Hawaii sports betting by a 15-10 vote. The amended bill will be sent back to the House for concurrence.

The House is expected to agree with the changes and Hawaii Gov. Josh Green (D) to then sign the legislation into law.

Hawaii’s Journey a Surprising One

Holt’s bill was the first sports betting bill to be approved by either the House or Senate. Despite its House approval, it was expected to receive heightened opposition in the Senate and an uphill battle towards legalization.

However, the bill quickly moved through the Senate and was eventually approved by the powerful Senate Ways and Means Committee last week, setting it up for full hearing and potential vote in the Senate.

While discussed in the Ways and Means Committee, members amended the bill to set the online sports betting tax rate at 10% of adjusted gross revenues. The committee also set license price tags at $250,000, with renewal fees also coming in at $250,000.

The bill will allow at least four online sports betting licenses to be awarded to operators in the state. It originally called for the Department of Commerce and Consumer Affairs to regulate Hawaii sports betting, but Director Nadine Ando expressed doubt that her department could do so during an earlier Senate committee meeting.

The Hawaii Department of Law Enforcement will regulate the new form of gaming if ultimately approved. Additionally, the enforcement of the general excise tax on sports betting will be administered by the Hawaii Department of Taxation.

It will also allow for the legalization of daily fantasy sports competitions in the state.

The amended tax rate, license fees, and regulatory department changes will have to be agreed upon by the House of Representative before being sent to Gov. Green for his signature.

If approved, the bill will go into effect on July 1, 2025.

Several Senators Speak Out on Legislation

While the bill did pass, several Senators did speak out against its approval.

“I’ve received email messages, as have you, from parents and ex-gamblers writing of the tragic loss of life and homes due to addiction of sports gambling from those who cannot keep their fingers from clicking to bet. It’s easy to say that sports betting is already happening, so why not legalize it? That works only when there are effective regulatory enforcement structures in place, but that’s not the case here,” Sen. Sharon Y. Moriwaki (D-12) said.

Sen. Lynn DeCoite (R-7) said the bill sends the wrong message to Hawaii residents and constituents. Encouraging Hawaiians to engage in sports betting during these risky economic times is not what the state needs, she said.