Hawaii House Approves Online Sports Betting Bill Despite Opposition

Hawaii took a significant step forward on Tuesday as the House approved a key piece of legislation.

By a vote of 35-15, lawmakers ed House Bill 1308, introduced by Honolulu Representative Daniel Holt. Only three of the affirmative votes included reservations.

Sports Betting Legislation Moves Forward

During his address to the House floor, Holt pointed out that sports wagering already occurs in an unregulated market, depriving the state of potential revenue and oversight.

HB 1308 proposes licensing at least four online sports betting platforms, with legalization set to take effect on July 1, 2025. The measure also includes provisions for fantasy sports under a separate regulatory framework. While the bill successfully navigated multiple House committees, it encountered resistance at various stages.

Last week, the Finance Committee advanced the bill with a 12-3 vote, though half of the approvals came with reservations. The committee also modified the bill by removing a proposed licensing fee of $250,000 for a five-year term and an initial tax rate of 10%, leaving those figures open for further discussion.

Holt endorsed these changes, stating on Tuesday that he remained open to discussions about appropriate fees and tax rates.

Concerns Over Social Impact and Economic Consequences

Before the House ed the bill, several representatives voiced their opposition.

Rep. David Alcos raised concerns about potential negative effects, stating, “There’s a lot of bad things that follow, from sex trafficking to stealing to all kinds of bad things that happen when you open doors to legalizing gambling.” He also questioned whether revenue from sports betting was the right way to fund public infrastructure, asking, “Do we want this kind of money in the state of Hawaii to fix our roads?”

Rep. Kim Coco Iwamoto opposed the bill from an economic standpoint, rather than a moral one. She pointed out that underground gambling, such as game rooms and cockfights, at least contributes money to local communities, whereas legalized online sports betting would send most profits out of state. Iwamoto suggested raising taxes elsewhere rather than turning to gambling revenue.

Rep. Chris Muraoka compared the argument that gambling is already happening illegally to the underground drug trade, stating, “The underground market is already thriving? We can use that same argument for meth dealers and cocaine dealers, even fentanyl. It doesn’t make it right.”

Despite opposition, proponents, including Hawaii’s workers’ unions and the Sports Betting Alliance (SBA), have advocated for the bill, emphasizing its economic benefits. According to the SBA, over 1,300 residents have reached out to legislators in of legalizing sports betting.

Senate Bill Faces Challenges

Although HB 1308 has advanced through the House, a similar Senate bill has not fared as well.

Senate Bill 1569 faced resistance from the Department of the Attorney General and other state agencies, leading to its deferral by the Commerce and Consumer Protection Committee on February 26.

Several other Senate measures related to online gambling have also stagnated in committee discussions.

The House’s age of HB 1308 marks the furthest any gambling-related proposal has advanced in Hawaii’s Legislature in over a decade.

While some lawmakers expressed concern about accessibility for individuals with gambling addictions, ers argued that illegal gambling is already prevalent. The bill includes provisions to allocate tax revenue toward gambling addiction treatment programs.

Holt reiterated that Hawaii’s strict gambling laws have not prevented residents from engaging in online betting through offshore and unauthorized platforms. “The reality is that sports wagering is already happening,” he stated.

While sports betting has not generated massive tax windfalls in other states, industry representatives have estimated that Hawaii could expect annual tax revenue in the range of $10 million to $20 million.

Rep. Alcos challenged whether such revenue should be a priority, saying, “Do we need that money to fix our roads? Maybe taking care of families is a better choice.”

Under HB 1308, the Department of Commerce and Consumer Affairs would be responsible for regulating sports betting. A previous draft of the bill earmarked $200,000 from licensing fees for the department, but Director Nadine Ando informed lawmakers that this sum would be insufficient to establish a new gambling enforcement division.

Ando noted that states with regulated sports betting typically have gaming commissions overseeing various forms of gambling, sometimes employing hundreds of full-time staff. “It’s monumental, what would need to be done in order to set this up to regulate this industry,” she told the House Finance Committee on February 24.

The final House version of the bill leaves licensing fees and tax rates undetermined for future amendments.

Senate Examines Broader Gambling Expansion

While the Senate previously halted efforts to legalize casinos on Oʻahu, lawmakers have taken steps to examine the potential economic impact of gambling.

On Tuesday, the Senate approved a proposal to establish a tourism and gaming working group. Housed within the Department of Business, Economic Development, and Tourism, this group would assess how gambling could create jobs, attract investment, and generate state revenue. Industry representatives from companies such as Boyd Gaming Corp., DraftKings Inc., and MGM Resorts International may be included in the discussions.

A final report from the working group is expected ahead of the 2026 legislative session.

Source:

‘’Local News’’, lrb.hawaii.gov, March 05, 2025.