Hawaii Sports Betting Bill Approaches House Floor

• A Hawaii sports betting bill is making its way to the House of Representatives floor
• HB 1308 was moved out of the House Finance Committee this week
• The bill was moved to the House with several amendments

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A Hawaii sports betting bill has made its way to the House after being approved by several committees over the last week, but questions on taxation and licensing fees still need to be answered.

Rep. Daniel Holt’s (D-28) bill, HB 1308, was approved by the House of Representatives Finance Committee after a 12-3 vote this week, sending the legislation to the House to potentially be discussed on the House floor.

However, the bill was approved as a “work in progress,” as both its tax rate and licensing fees have been left blank for further consideration.

Questions on Taxation, Fees

The approval in the House Finance Committee is the third committee in the last several weeks to give their blessing to the bill.

However, prior to the vote Finance Chair Rep. Kyle T. Yamashita (D-12) 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’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.

The piece of legislation is a new stream of revenue for the state when legislators have been tasked to find new monies, Holt said.

“You always tell us to find revenue sources, and I think this is a good discussion to have. I don’t think we’ll be creating a bunch of new gamblers, but will be collecting the tax revenue from those who already choose to participate in this type of entertainment,” he said.

While Holt’s bill now moves to the House, the bill’s companion piece in the Senate, SB 1569, has not had as smooth a path. It was recently deferred by the Senate Commerce and Consumer Protection committee.

Opposition Still Remains

While the bill moves through the House, it still faces quite a bit of opposition from various state agencies.

The Department of the Attorney General submitted testimony to the committee opposing legalized online sports betting, citing concerns of rising problem gaming rates and numerous public safety and health issues.

“In addition to the direct impacts of online sports betting on household finances, multiple studies have shown a correlation between problem gambling and domestic violence, with approximately 38.1% of problem gamblers reportedly being victims of intimate partner violence, and 36.5% percent reportedly being perpetrators of intimate partner violence,” the department wrote in its testimony.

The Hawaii Family Forum noted in its submitted testimony that the bill represents “a major cultural shift” which poses significant consequences for Hawaiian families, individuals with problem gambling additions, and the “broader common good.”

After New Jersey legalized sports betting in 2018, the state’s Council on Compulsive Gambling has seen an increase of more than 277% in calls to its problem gambling hotline, according to the Hawaii Family Forum.

“Sport, at its best, builds character. It teaches discipline, teamwork, and perseverance. It brings people
together—regardless of background—creating moments of pure joy and shared excitement. But when sports
gambling is commercialized, it strips away these noble aspects and turns the game into just another way to
make money. Instead of inspiring athletes to push their limits for the love of the game, it turns them into
commodities—tools for profit, often without their knowledge or consent,” the forum wrote in its testimony.